Market Talk

520 views

I see that the futures trading is indicating overnight weakness. Indeed, many areas of the market are either already oversold or rapidly approaching that condition. In particular, the steels, solars, and big banks have seen roughly 30% haircuts across the board. For a trade, I think that they are setting up to be much more buys than sells, especially if the futures hold and we see a gap down tomorrow morning (buying into the weakness). As always, I will have a stop-loss in place of roughly 7% or tighter, depending on the technicals.

I also wanted to include the chart of PRMW. With the coffee plays set up well and outperforming, such as GMCR and PEET, and SODA garnering all sorts of attention, PRMW employs a similar business model to GMCR and SODA. The price and volume pattern are exactly what we look for in terms of a bullish setup.

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9 Responses to “Market Talk”

  1. Return to the mean long setups are no doubt bountiful, but are you sailing with the wind at your back?

    • no–that’s the whole point of buying weakness

      • Buying the weakness of the previous Fukushima sell off made sense because it was an exogenous event. This sell off is different because liquidity is being taken out of the mix and I think it’s pretty clear this rally has been all about liquidity. It’s why we’ve rallied over and over again in the face of bad news.

        • I’ll see what happens tomorrow. We might not even get a gap down. Stranger things have happened.

          • My conviction that we’re now in an intermediate bear market is so strong that I’m sure we rally 30 spx points tomorrow.

            The action in copper is curious.

  2. Yogi & Boo Boo

    Thanks Chess.

  3. What do you think of $SODA? I’m thinking I should own some this? Tel Aviv company —just a baby

Comments are closed.

Market Talk

520 views

I see that the futures trading is indicating overnight weakness. Indeed, many areas of the market are either already oversold or rapidly approaching that condition. In particular, the steels, solars, and big banks have seen roughly 30% haircuts across the board. For a trade, I think that they are setting up to be much more buys than sells, especially if the futures hold and we see a gap down tomorrow morning (buying into the weakness). As always, I will have a stop-loss in place of roughly 7% or tighter, depending on the technicals.

I also wanted to include the chart of PRMW. With the coffee plays set up well and outperforming, such as GMCR and PEET, and SODA garnering all sorts of attention, PRMW employs a similar business model to GMCR and SODA. The price and volume pattern are exactly what we look for in terms of a bullish setup.

12631.png”>12631.png” alt=”” width=”590″ height=”390″ />

___________________

12631.png”>12631.png” alt=”” width=”590″ height=”390″ />

___________________

12631.png”>12631.png” alt=”” width=”590″ height=”390″ />

9 Responses to “Market Talk”

  1. Return to the mean long setups are no doubt bountiful, but are you sailing with the wind at your back?

    • no–that’s the whole point of buying weakness

      • Buying the weakness of the previous Fukushima sell off made sense because it was an exogenous event. This sell off is different because liquidity is being taken out of the mix and I think it’s pretty clear this rally has been all about liquidity. It’s why we’ve rallied over and over again in the face of bad news.

        • I’ll see what happens tomorrow. We might not even get a gap down. Stranger things have happened.

          • My conviction that we’re now in an intermediate bear market is so strong that I’m sure we rally 30 spx points tomorrow.

            The action in copper is curious.

  2. Yogi & Boo Boo

    Thanks Chess.

  3. What do you think of $SODA? I’m thinking I should own some this? Tel Aviv company —just a baby

Comments are closed.