Just to reiterate the first 2-3 days of the trading month is usually upwards biased just as the last few days. Although that is not a very strong trend like the end of month and end of quarter it does play out most of the time.
June I think the market SHOULD pullback in preparation for the next earnings season. This week should be interested as the indexes all basically close friday at their respective resistance points.
The DOW has once again formed a triangle in the charts and I expect a break either way should give us a decent push in which direction it breaks. Numbers to watch on the upside is 12920 and on the downside 12500.
The old adage sell in May and go away might be in play and it must be noted June and July are the two hardest month to trade so I move than likely I might be trading less and using futures more that stocks and options.
Not much else to say more than watch the key sectors like tech and Agros for 10 am plays. I like BIDU short here but I dont need to let you know BIDU is one crazy stock!!!! so I will wait for confirmation before I head in that trade using options!!!!!! not stock on that play.
Sunday, June 1, 2008
Thursday, May 29, 2008
A couple stocks to watch
Ok I dont want to be long a bunch of stuff here as I know many of my readers follow me religiously on the plays. I for one dont want anyone to get crushed here. Next week will be telling. I believe we head down out of the month end run up I explained last weekend.
Some stocks look strong here though Visa is one I think will make new high here soon. MA is on fire and it is only logical for Visa to follow but for me the risk reward is not too great so if you play play with options or light on the size.
Second stock is Google. Yes GOOG, seems like it wants $600 here near term. Now remember GOOG can touch $600 tomorrow or on a good day so I wont be pushing it here, I am just making note of it.
Now for the fun part Oil and Gold. I just finished looking at the charts and yep yep yep folks, Oil can goto 108-110 level and still be in a bullish pattern. I think I would be a buyer of Oil 15-18 points lower. I hope we get a few wash out days so I can jump on board.
Gold also in the same predicament. Gold can lose $60 here and still be in a bullish pattern and if they dollar weakens or the FED signals again that rate cuts are over I would be all over it.
The market seems like it wants to pull in here but I am not 100% sure, but if we do, it would be a catalyst for a healthy move to go higher.
My positions are small here.
MER short
WFMI short
SOV short
C short
FNM short
Some stocks look strong here though Visa is one I think will make new high here soon. MA is on fire and it is only logical for Visa to follow but for me the risk reward is not too great so if you play play with options or light on the size.
Second stock is Google. Yes GOOG, seems like it wants $600 here near term. Now remember GOOG can touch $600 tomorrow or on a good day so I wont be pushing it here, I am just making note of it.
Now for the fun part Oil and Gold. I just finished looking at the charts and yep yep yep folks, Oil can goto 108-110 level and still be in a bullish pattern. I think I would be a buyer of Oil 15-18 points lower. I hope we get a few wash out days so I can jump on board.
Gold also in the same predicament. Gold can lose $60 here and still be in a bullish pattern and if they dollar weakens or the FED signals again that rate cuts are over I would be all over it.
The market seems like it wants to pull in here but I am not 100% sure, but if we do, it would be a catalyst for a healthy move to go higher.
My positions are small here.
MER short
WFMI short
SOV short
C short
FNM short
Bullish mode
Market in a bullish mood dude to the pullback in oil and Gold plus end of month mark up.
Be careful out there because volume is not that heavy
Be careful out there because volume is not that heavy
Levels I am watching
I am watching the 12450 level on the DOW. A breach below could signal a sell signal in the indices and march us to the April lows then March lows.
Wednesday, May 28, 2008
Ok
Well after today's action I am convinced we are just being held up by end of month dressing. I am going out on a limb here but I think a few stocks look sweet for short set ups.
Two I am looking at are not for the faint of heart..
These two stock have been strong but are show lower highs in the charts so I think the risk reward are good. I will see how they open tomorrow before I call them.
A gap up tomorrow for me is a easy short!
Look for the brokers and investment banks again for short opportunities. I still think there are more shoes to drop in the financials but which one I dont know. Right now all the banks are trading terrible, look at Citibank, Wachovia, Bank of America all trading at multi year lows.
Citibank looks like it wants $17, Bank of America could see $27 and Wachovia which looks almost as bad as Citibank seem to be looking for $20. We will see soon enough.
Tomorrow is thursday and I might be too early to this trade but I am buying TWM at open if we do gap up. I already bought some QID's today and think we might roll over anytime now and these are good plays. Also look at SDS which is the ultrashort S&P.
I am targeting a short term push on the S&P to the 1330 level after this push up for the week, so we will see how that turns out.
Two I am looking at are not for the faint of heart..
These two stock have been strong but are show lower highs in the charts so I think the risk reward are good. I will see how they open tomorrow before I call them.
A gap up tomorrow for me is a easy short!
Look for the brokers and investment banks again for short opportunities. I still think there are more shoes to drop in the financials but which one I dont know. Right now all the banks are trading terrible, look at Citibank, Wachovia, Bank of America all trading at multi year lows.
Citibank looks like it wants $17, Bank of America could see $27 and Wachovia which looks almost as bad as Citibank seem to be looking for $20. We will see soon enough.
Tomorrow is thursday and I might be too early to this trade but I am buying TWM at open if we do gap up. I already bought some QID's today and think we might roll over anytime now and these are good plays. Also look at SDS which is the ultrashort S&P.
I am targeting a short term push on the S&P to the 1330 level after this push up for the week, so we will see how that turns out.
Lehman Brothers
How many times have I said - STAY AWAY from the financials. Rumors are abound of LEH seeking capital infusion.
Oh yes financials are at a bottom, listen to cramer and the fast money idiots please and lose your money..
SHORT FINANCIALS or STAY AWAY.
Wachovia also at multi year lows.
Oh yes financials are at a bottom, listen to cramer and the fast money idiots please and lose your money..
SHORT FINANCIALS or STAY AWAY.
Wachovia also at multi year lows.
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