Wednesday March 5

Well folks here we go. The real truth is that financial institutions are run by a bunch of morons who base every decision on how much money or bonuses they can make. These actions are now coming home to show the incompetent of money managers, many of who have no idea on how to make money but just have the access to it. They throw darts are 1000 investments hoping 2 will make it big to compensate for the 998 losers.
Here we intend to do the reverse have 998 winners and 2 losers and that's the aim of my blog to help people. The last two weeks have been excellent and many professional money managers would wish they could make such calls. One reader of the blog who will remain nameless wrote me today saying he is up 35% on some GS puts he bought on my commentary last week. My hats off to him because it was just mentioned in commentary and not a trade call. Trade calls are trades I personally make in my accounts. Great play indeed.
Well what is next ? Google hit a 52 week low today and I expect the internet giant to fall more. Again i am reiterating my call of $370 then $325 on the downside for that stock. Citibank seem like there are in trouble and again I think they will have to get another round of capital injection to keep them afloat as the job cuts alone wont help. Time for the street to face reality and face the fact that they are the ones who creative bubbles in the market place and causes the masses to lose money.
I think some commodities will be dead money soon and all those running to the commodity plays here are just foolish. Jim Cramer calling GOLD to 1600, what a joke!! I bet it see 850 before it see 1100. Jim called GOOGLE top when he said google to $1000. No way! are they all on crack, it will never happen.
Oil should get a substantial pullback here, I will have to run some numbers to see what levels to watch but at a quick glance Oil could retrace back to $90 easily before we head higher again. Oil in the mid 80's is a perfect buy spot in my opinion but as off today I am long some DUG which is the ultrashort share of OIL and Gas because I think it pulls in. Tomorrow is inventory numbers and I will be looking for reaction off the number.
Folks manage your trades and be nimble you will see your account grow nicely, use stops whether electronically or mentally on every trade.
Tomorrow should be highly playable day for the active intra day traders based on todays action.

I will be sending two plays before thursday which I think will make monster moves.

Good luck on Wednesday

TRADE UPDATE:OIH PUTS

I just looked at my options account and noticed I have some OIH 180 puts from February 21 @8.75. I am risking all of the amount on this play there is no stop for me.

Monday was a digestion day as the markets locked themselves into a choppy range for much of the session. The afternoon hours did mark a sharp move down but the bulls reciprocated with a bounce back reaction into the close to form dojis on the daily market charts. The day was not all that unexpected following the decent range on Friday, although I had no model to predict it.

Fact is it wouldn’t surprise me if we consolidate along these lines for a little while before we make the next move, most likely lower. I might look for a little bit more range on Tuesday, and again it’s difficult to predict a direction for the day. If we do rally and close strong, though, I will probably look to fade it on
Wednesday.

I am still bearish for the short and intermediate term here and if we do put in a sharp bearish impulse out of the market open, I probably would look for flags and pennant setups for more downside plays.

In the meantime i am still long SKF and short SOV

AMZN short was awesome to say the least and I think it goes lower.

Have a great Day