On low volume, things are moving fast. For the moment, I will ignore the volume and take the market at its word.
We have a significant breakdown in gold, which is giving the bulls open field to run. Rehashing the news is irrelevant, since it has no bearing on price action, at the present.
I went long a variety of names, mainly to hedge my depreciating short positions. I reduced some of my exposure in [[FXP]] , only because it’s up. Basically, I needed the cash to do other things.
Following the current theme: kill the shorts. I like: Barnes & Noble, Inc. Barnes & Noble, Inc. [[BKS]] , NutriSystem Inc. [[NTRI]] , Chipotle Mexican Grill, Inc. [[CMG]] , Hansen Natural Corporation [[HANS]] and KB Home [[KBH]] .
However, keep in mind, the market has limited upside here. This is the part when it seems easy to make some coin going long. Next thing you know, it’s elevator down and you’re crying in your garage again.
There’s no ignoring the carnage in [[SKF]] and [[SRS]] . Lots of shorts have been flame broiled. I suspect many of those burgers are being flipped out of their positions today, either by their own volition or the margin clerk. Either way, all of these things combined are causing stocks to spike, like GameStop Corp. [[GME]] and Best Buy Co., Inc. [[BBY]] .
In short, take advantage of the short squeezes, but keep all open positions on a short leash. I can’t help but think, the banks will pullback soon.
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Quick Note
The current rotation out of commodities, into equities is unsustainable, and will only skull fuck those that are not nimble, and paying attention.
Warning to those asshats who are nonconforming to change, and hold deep, uncompromising, convictions. You better put your money in a CD … this is no time to be fucking around.
Watch Todd Harrison, and get a better understanding:
http://finance.yahoo.com/tech-ticker/article/46722/Sorry-But-Plunging-Oil-Prices-Aren't-Really-Good-News?tickers=^gspc
Anyone care to guess when I bought Puts in RTH…
Shazbot!
Don’t forget about EEV, chief.
That was your call, and it’s still a very good one with this dollar fuckery.
_
Cubby:
You really meant to buy CALLS, right?
turnaround tuesday anyone? we are way overbought here & a smackdown to SPX 1290ish wouldn’t shock me.
man, the SKF looks like a giant slab of prime rib right now.
Did I top tick those coal and natty stocks or what?
I make Cramer look credible.
must be why ponytail isn’t on the show now.
finerman called the top in coal almost to the day.
Quant funds unwinding more of their dumbass pairs trades, there is no doubt. Apparently , they have figured out that with double pairs, if one side takes a crap your margin clerk will be on the horn, causing you to unwind all your shit. What a bunch of fucking geniuses. God only knows how much longer this shit goes on.But it does seem like the dominoes are falling. However, when the unwinding has ceased, the shit REALLY hits the fan.
Poor Bernie Mac has passed. Freddie Mac is next.
Never trust an Armenian.
I made a killing on my long index/short uso combo. I’m getting out of the Indexes and going to cash. I’ll keep the USO short on the table for now.
Index futures are already breaking – the volume has been ridiculously low today. Not much longer now 🙂
Anyone think gold reverses from here?
Wood, I’d be surprised if we don’t see $780 at this point.
SLV may stick at $14.40, however and this could be a good entry.
I am still waiting to get back in FXP. I do not like its price action at this point. There is more money moving into FXI. I am starting to wonder if this drop in inflation is going to cause a large bounce in China before they go to hell and back. You know how mother market gets her rocks off.
that little fed statement was enough to cause some healthy selling in the market a few min ago. now oil is creeping up. i’m all cash again. sold my last long today.
SKF is creeping up, too.
*edit: considering all the gains, %-wise, in retail and banks today, i’m not too surprised to see people looking for a reason to cash out. i’m not confident that it’s anything more than that, though.
Aris, I’m considering taking some profits on my breakouts I’ve been holding for a few weeks now.
Jake, you’re probably right about gold. I was stopped out of GLD last week, but right here, right now, it is thinking about a little reversal move up.
“Anyone think gold reverses from here?”
Hey Woddy – my target is 800. Just FYI: I have been playing Gold short since it hit 960 – got a lot of heat a month ago on OA for calling that (and pretty much getting it right on Gold since March). Who’s looking stupid now? 😉
Anyway, if you’re not in there right now I’d wait a bit more. Gold could pop up for a small correction, but I do see it touch 800 this week.
Thanks Mole…
yeah, the long-term p&f chart on gold looks lousy.
i almost bought the SKF @ 108 today. again, i hesitated and missed the move. fuck.