We are on FIREEEE!!!!!!!!!!!!!!
all stocks mention here this morning are up
FSLR+ $8
BSC+ .50 went as high as $2
TOL +$1.50 huge percentage mover
GS - flat here
Google+ $20 went as high as +$30
only HD and LOW down like 60 cent each.
WOW on fire.
Thursday, January 24, 2008
Thursday 24th
Well that was some monster rally off the lows. The lows yesterday were significant as they prove that we must test and did test the lows of Tuesday premarket FED rate cut. So what happened today? Well let me first start by saying that the ten largest gains in the DOW and S&P happened in bear markets, why this is so I will explain. In bear markets just as bull markets we often get exaggerated in one direction, bear market to the downside and bull markets to the upside. Since January we have been down and as of now we are on record to post the worst January in market history but I digress. The first two weeks of January I have been getting a lot of oversold conditions on the market such as extreme TRIN readings. These extreme TRIN$ readings for days cause what is referred to as ‘Elastic band theory’, which is where we are so stretched to the downside that when the selling pressure eases up we catapult in the opposite direction. Today was a classic example of that theory.
Now what next for the market? Today I anticipate the Bulls to show up and consolidate the move made yesterday. What I would love to see is a gap down and a push higher into some resistance at 1355 on the S&P. Whether this happen is just a guess but just like yesterday’s blog entry of a devious scenario which did play out I might as well guess for this scenario to happen today. After we hit resistance I do expect us to consolidate the move.
For today my plan is this- I will be looking at the strong sectors and stocks to have some follow through. On a gap down I would 100% be a buyer of stocks such as BSC, FDX, GS, FSLR and even GOOGLE. One sector I have been making note of in the past few sessions is the housing and retail sector. Yes these two sectors have been so beaten down that funds seem to be bottom picking at a few of them, noticeable LOW, HD, CTX, TOL etc. I suspect these two sectors should see alittle more upside if the market pushes higher here.
Today I would take small and see how we digest the move, but I would be looking on the above stocks on any set up and also looking for resistance into that S&P area noted above.
Good Luck.
Now what next for the market? Today I anticipate the Bulls to show up and consolidate the move made yesterday. What I would love to see is a gap down and a push higher into some resistance at 1355 on the S&P. Whether this happen is just a guess but just like yesterday’s blog entry of a devious scenario which did play out I might as well guess for this scenario to happen today. After we hit resistance I do expect us to consolidate the move.
For today my plan is this- I will be looking at the strong sectors and stocks to have some follow through. On a gap down I would 100% be a buyer of stocks such as BSC, FDX, GS, FSLR and even GOOGLE. One sector I have been making note of in the past few sessions is the housing and retail sector. Yes these two sectors have been so beaten down that funds seem to be bottom picking at a few of them, noticeable LOW, HD, CTX, TOL etc. I suspect these two sectors should see alittle more upside if the market pushes higher here.
Today I would take small and see how we digest the move, but I would be looking on the above stocks on any set up and also looking for resistance into that S&P area noted above.
Good Luck.
Wednesday, January 23, 2008
Turn around ?
Tomorrow morning I will be pointing out where i think the market will go after todays turn around on news that the congress is planning on mortgage bailouts.
STAY TUNED!!!!!
STAY TUNED!!!!!
Devious Scenario playing out
As noted this morning before the market open of a possible devious scenario has happened. It is pretty scary that the FED has no power and they shouldn't if they approach problems as such.
My targets on this downside have been on fire if I might toot my own horn. Google i said would retrace down to $550 level it is at $530 now, BIDU is said would be below $250 now it is $240 and APPLE i said would go to $165 then $150 is now at $128. Those are some huge moves. I was going to do a Market trade yesterday on MA (Mastercard) but didn't, i am sorry i didn't as MA is down $10 today.
I will update in a few as I see some plays i see setting up
My targets on this downside have been on fire if I might toot my own horn. Google i said would retrace down to $550 level it is at $530 now, BIDU is said would be below $250 now it is $240 and APPLE i said would go to $165 then $150 is now at $128. Those are some huge moves. I was going to do a Market trade yesterday on MA (Mastercard) but didn't, i am sorry i didn't as MA is down $10 today.
I will update in a few as I see some plays i see setting up
Devious Scenario
Well yesterday the market reacted how i expected on a huge gap down. The Market retraced over 350 point in the first hour but then we coiled in a very tight range from 11am till the close. The .75% cut might have saved us from dropping a whopping 1000 points, but my question is, was it all a one day wonder?
The most devious situation for us today would be for us to retrace down the 350 point we bounced yesterday and test the overnight lows of Monday. Wow that would cause serious panic and we would get a capitulation scenario where we could work on a much better base. I have no doubt we will bounce but I am 100% sure the lows of Monday futures will be tested and broken, yes broken, no way it holds if we test those lows. Just like I told many in 2004 that the housing market would crash and it would take 6 years to completely recover, I am saying the same here for the markets. No way we go down for 3 months and that's all the bear market has to offer when we were in a bull market for 4.5 years, just not logical. The problem with markets is that they dont go up or down in a straight line and we have counter moves in a larger trend.
APPLE posted some great numbers in my opinion but as usual Wall Street wanted more and are pushing our futures down this morning, also Motorola truly disappointed with sales and profits compared to last year, another signal that the consumer might be showing crack in disposable spending.
Lets see how the day plays out and hope the devious situation noted above doesn't play out for the investing public. Doesn't matter to me what happens because I am not an investor but a trader. Oil seem to be forming a bear flag on the daily chart and looks lower intermediate term, although I am oil bull long term, these are examples of counter trends within the longer trend.
Earnings season is upon us here and might save the market if some heavy weight companies report excellent earnings but I am not holding my breath on that!!!
The most devious situation for us today would be for us to retrace down the 350 point we bounced yesterday and test the overnight lows of Monday. Wow that would cause serious panic and we would get a capitulation scenario where we could work on a much better base. I have no doubt we will bounce but I am 100% sure the lows of Monday futures will be tested and broken, yes broken, no way it holds if we test those lows. Just like I told many in 2004 that the housing market would crash and it would take 6 years to completely recover, I am saying the same here for the markets. No way we go down for 3 months and that's all the bear market has to offer when we were in a bull market for 4.5 years, just not logical. The problem with markets is that they dont go up or down in a straight line and we have counter moves in a larger trend.
APPLE posted some great numbers in my opinion but as usual Wall Street wanted more and are pushing our futures down this morning, also Motorola truly disappointed with sales and profits compared to last year, another signal that the consumer might be showing crack in disposable spending.
Lets see how the day plays out and hope the devious situation noted above doesn't play out for the investing public. Doesn't matter to me what happens because I am not an investor but a trader. Oil seem to be forming a bear flag on the daily chart and looks lower intermediate term, although I am oil bull long term, these are examples of counter trends within the longer trend.
Earnings season is upon us here and might save the market if some heavy weight companies report excellent earnings but I am not holding my breath on that!!!
Tuesday, January 22, 2008
Powerful bounce
Said it before and will say it again I was buying the gap down if we gap down heavy. Wow that was the right call we are bouncing hard here. If you played the bounce I would be long gone here.
Rate cut! Will it help
Well just as predicted we have gotten a surprise rate cut of .75% by the FED. I am very scared when they did this 40 minutes ago as to me it signals panic as the FED meeting is scheduled to happen in 5 days from today, why not wait? The reason they can wait is the usual STUPIDITY of these people they put in charge of wall street firms and the FED. Why should the fed bail out people who make bad investments, WHY? This rate cut will have no effect!!!! none whatsoever.
Bernanke needs to step down as he can't analyze the situation and I blame these Wall Street crooks who constantly rape us and gain huge bonuses, then get bailed out. The next 3 days is going to be wild very wild, the FED should have not moved today, it is causing more panic than anything else.
Over the weekend I went to the bookstore to read this weekends Barron's. The cover showed 10 analysts predicting what would happen this year. Eight of them said the market would be up this year and one of the very popular ones Abbey Cownhead said the DOW would hit 14750 this year. That is Wall Street problem, we listen to these heads of large firm and put our trust and dollarss with them and we get burnt. The problem lies with the tradition of analysts who alwas thing bullish and say everything should go up.
M last note before the market opens is be cool and calm here and dont panic. This market is extremely tough to invest in so DONT. This is traders market and if you aren't a trader then stay in cash.
Bernanke needs to step down as he can't analyze the situation and I blame these Wall Street crooks who constantly rape us and gain huge bonuses, then get bailed out. The next 3 days is going to be wild very wild, the FED should have not moved today, it is causing more panic than anything else.
Over the weekend I went to the bookstore to read this weekends Barron's. The cover showed 10 analysts predicting what would happen this year. Eight of them said the market would be up this year and one of the very popular ones Abbey Cownhead said the DOW would hit 14750 this year. That is Wall Street problem, we listen to these heads of large firm and put our trust and dollarss with them and we get burnt. The problem lies with the tradition of analysts who alwas thing bullish and say everything should go up.
M last note before the market opens is be cool and calm here and dont panic. This market is extremely tough to invest in so DONT. This is traders market and if you aren't a trader then stay in cash.
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