Joined Jan 1, 1970
509 Blog Posts

Intraday Breaks

This market is like Rocky, who refuses to go down for the count, even though his cranium is getting pummeled with bad news, MMA-style. It makes no sense, but neither do “Italian Stallions” 

I see where Federated is making a big push to roll out David Tice’s new “Federated Prudent Bear Fund”. Soon every other clownfish broker  will be putting his retail clients into bear funds. Take your cue from that development.

Regarding breakouts/breakdowns, as of noon ET, there were 45 stocks “breaking”. Of those, 18 were bullish breakouts and 27 were bearish breakdowns, so give the bears the slight edge.

New Breakout:

New breakdown:

That is all. Carry on.

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Late Night Development

After spending hours pouring over charts this evening, I find it hard to believe what my eyes have seen. Despite the downdraft in the indices today, there are over 6 times more bullish PnF chart patterns than bearish PnF chart patterns—a divergence from what the indices told us. 

This data is taken from over 4,100 stocks. The most prevalent and persistent pattern is the double top breakout. Over 2,300 stocks are exhibiting that pattern. In contrast, only 450 stocks exhibited a double bottom breakdown pattern. 

As far as new bullish/bearish pattern breaks intraday, there were 44 new bullish breakouts and 63 new bearish breakdowns. Hardly an “end of the rally” alarm.

Take away: this market is still showing broad-based bullish strength.  

Bulls not shaken by today, just stirred.

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Bought the Pullback

Just because.

Yeah, I was in a cantankerous and contrary mood today. Maybe it was all the raw meat I consumed for dinner last night. Or, maybe it’s because I’m seeing something you’re not (or imagining it).  Can’t really say, but here’s a summary of what I bought on today’s pullback:

ARM @ 3.53

APOL @76.29

GGP @ 1.73

HTX @ 4.37

HUN @ 3.67

JEC @ 50.05

PBR @ 25.90

SU @ 22.74

POT @ 82.98

BBL @ 39.29

Bad timing? ….Sue me.

(Disclaimer: Not a solicitation to buy these stocks. If you buy without doing your homework, the old shell casings you threw in your oven will explode, thus causing you to shoot yourself without a gun. Odd, no?) 

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Gleeful Thoughts at MidNight

The market is one positive day away from launching to new heights.

We shall see Dow 10,000 again, before everything descends into the bottomless pit.

Stocks like POT and MOS are back, working their stinkin’ magic.

Oil will go up, then down, then up and down again, eventually moving higher.

I will make money on my low priced small cap stocks.

The employment report and the numbers won’t be so bad. Ten percent unemployment has been priced into this market already. We won’t get there this year, thanks to El Obama. 

Positive things, come to me, by the dozen.

Unless a comet hits the earth and the market is down, tomorrow I shall be buying energy, metals/mining, and ag stocks, among other things. More on this later……Good night.

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Is the Market “Overbought”?

Looky here, people. By numerous forms of reckoning, this market is the most overbought in two years—by normal measures.

But just in case you’ve been living out of a yakskin yurt in Siberia the past 12 months, know this: we have not been in a “normal” market environment.

You don’t have to pull out your volumes of charts and technical data. Just use your common sense. Considering the extremely oversold levels the market is coming off of from Oct//Nov, we are not “extremely overbought” right now, by any means. Sorry, bearshitting short-selling hopefuls. Your motives and agenda are clear when you keep saying stuff like “Market going down. New lows this (month)” (ad nauseum).

Don’t you think that the stupid and embarrassed fund managers realize this? They are looking at no bonuses for 2008. You think this is all very funny? They must keep buying now, or risk going into personal bankruptcy and foreclosure. They’re even cutting back on their visit to Starbucks, choosing to drink Dunkin’ Donuts coffee instead, from a pink Fly-autographed cup. It’s a conspiracy. If it all works out, they will be able to stay in their homes and say they called “The Bottom”. All will be forgotten and forgiven (in 20 years).

In the meantime, money flows have been coming back. Don’t be surprised to see net inflows to mutual funds in January, due to the Obama-rama celebration.

See, you must take things in context, else you will embarrassingly debank yourself while giggling like a clown. That would be sad, my friend—but still rather clownish.

As I said before, we will know this week if this market rally has legs. However, I’m beginning to believe that the stumps are sprouting some feet.

That is all.

Carry on and be well, as best you know how.

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