For Friday I am looking for a low volume day to finish off the week. Today I was very disappointed in the bull action and I will be writing a thesis this weekend as to where I think the markets will go in coming months.
Most of you know I think the markets are in trouble but it just doesn't know it yet. Commodities seem to be on fire and how much higher will we they go is anyone's guess. Gold definitely seem like $1000 is the target and the EURO$ seem like it wants 1.57.
I will be giving out a few stocks in the next week which I think will have a hard time in the next 12 months. The first one I will mention now is GS (Goldman Sachs), it has been the saving grace of the brokers but I think its time is near and I think there is a good shot for GS to trade below $100 in the next 12 months.
Watch out Sunday night for an in depth analysis and some stocks which I believe will be 1/2 their present value in a year.
MARKETJEDI
Thursday, February 28, 2008
TRADE CALLS!!!!!!!!!!!!!
Make three calls here.!!!!!!!!!!!!!
These are longer term plays
Long SKF @109.90 here - This i am keeping as a long term swing (months)
Short AMZN @ 68.60 here. This i am also keeping but I have a mental stop and might add to the position.
Short SOV @11.25. This is also longer term play.
I will update on the weekend
These are longer term plays
Long SKF @109.90 here - This i am keeping as a long term swing (months)
Short AMZN @ 68.60 here. This i am also keeping but I have a mental stop and might add to the position.
Short SOV @11.25. This is also longer term play.
I will update on the weekend
Thursday
Employment number came in 8:30 on the rise. Proof that recession is close if not here already. All numbers now point to a downturn in the economy and with commodity prices rising we might just be at the beginning of it.
On to the technicals: It was a narrow range day for the markets yesterday, from the opening to the close anyway, as we did see some whippy moves intraday, but at the end of the session we closed near the unchanged level. Wednesday’s doji day in fact formed an NR 7 bar, the narrowest range of the last 7 days and often suggests a big move the next day, so we could have that to look forward to today.
If a big move is coming we need to be prepared to go either direction, although my short term bias is now to the upside, so that would be ideal trend for Thursday. Either way, I probably look to get aggressive on the first sign of a trend either way. If we coil early and breakout let’s look for momentum trades. If no discernible patterns present themselves early, then we can look for a break of the first hour’s range for a hint to the possible trend of the day. If the NR7 scenario plays out, we could have a nice trend day for Thursday.
On to the technicals: It was a narrow range day for the markets yesterday, from the opening to the close anyway, as we did see some whippy moves intraday, but at the end of the session we closed near the unchanged level. Wednesday’s doji day in fact formed an NR 7 bar, the narrowest range of the last 7 days and often suggests a big move the next day, so we could have that to look forward to today.
If a big move is coming we need to be prepared to go either direction, although my short term bias is now to the upside, so that would be ideal trend for Thursday. Either way, I probably look to get aggressive on the first sign of a trend either way. If we coil early and breakout let’s look for momentum trades. If no discernible patterns present themselves early, then we can look for a break of the first hour’s range for a hint to the possible trend of the day. If the NR7 scenario plays out, we could have a nice trend day for Thursday.
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