Roller Coaster

Wow up one day 300, down next day 200, then up 300 next day this is one crazy market. Had to do a post on my vacation but we closed at the resistance 1292/6 area I spoke about before. Now what do I think? Think you would be crazy to be trading this market in here under this heavy volatility and secondly I do think we can get a push to that 1320 area. I do expect the talking heads to come out and tram the small players into this rally but it is just a vicious rally in a bear market and nothing more.
I would be setting up shorts here. Some TWM, which I own, some QID, some SKF should be good here but we can get another push higher so make sure you scale into these positions.
I currently have some SKF @$116 average and TWM @$71.
Upside is limited believe it or not so dont get sucked in too deep. Today and wednesday's rallies were in deed awesome but I think they should just be traded.
Russell push to 735 is very impressive and I think 750 should be the cap on that one but we will see.
OIL, OIL, OIL. Think I will be watching that $111 level if it reaches there. I doubt if we crack sub $100 but you never know. Personally I think Oil is a retreat because of China's Olympic move to lessen pollution but after that demand will step up again. Oil long term is definitely cheap here and I am a long term bull on the commodities. This rest is VERY healthy and I will be watching Oil in the coming weeks as the Olympics come to a close.

Have a great weekend. I am still away and will be back maybe Tuesday in full force.

OH NEXT WEEK FRIDAY IS THE NEW STAR WARS. :)

FOMC announcement today

Remember we have the FED meeting and announcement @2:15 today.
Market is up huge here and that's kind of unusual into a FED meeting. I dont know if they sell it off before or after but I have some thoughts.
I want to make one thing clear, Oil is not the make or break for this market as the pundits have been saying on TV. Oil dropping to $100 or $75 a barrel means nothing we will still go down.
I think upside here is limited to around 1350 on the S&P, which is 75 points above and down side is about 350 points so I rather play it as such.

New Week

Folks I will be in and out today once again but as of now the markets last week was forming a wedge which could be interpreted as a bearish formation.
With the FOMC meeting tomorrow we could be in a slow pace today and tomorrow, so dont force anything.

Heavy Wachovia rumor

After their Chief Risk Officer and CFO resigned I started to step up my research on Wachovia. There is a heavy rumor on Wall Street that Jamie Dimon from JP Morgan strongly looking into taking over Wachovia.

Just a heavy rumor now, but the fact that the CFO and CRO resigned let me think it is very possible

Heads up

Wont be here next week after tuesday. Going away for a few days.
I will have my laptop so if I can get broadband and I see anything worth playing I will post some stuff

TRADE CALL UPDATE:GOOG Puts

GOOG puts double here- take 1/2 off


printing $23.50

TRADE CALL UPDATE:GOOG Puts

For those who took the GOOG puts they are doing nicely here- ALMOST a double.

Death to GOOG