Hello day traders! Here’s my surf report for day 1 after that wicked Fed Wave, which gave us a tsunami of a wave for all indexes… +300 on the Dow! You kidding me? I see some swells developing in the following surf spots. Remember, you don’t have to paddle and try to catch every wave… you do that, you’ll get too tired. Just wait for the perfect set, then take it! Now where are you gonna surf?
NORTH SHORE: priceline.com Incorporated [[pcln]] looks to start off on a deep gap down. PCLN is now your correlation stock for the internets.
- If PCLN gaps up, then buy gapped down stocks that did good yesterday… AMZN, RIMM. What I’m hoping for is the other scenario…
- if PCLN continues to slide down (I’m hoping for this wave), get ready to surf some internet stocks on the short side… short Overstock.com, Inc. [[OSTK]] , The9 Limited (ADR) [[NCTY]] , VistaPrint Limited [[VPRT]] , or Sohu.com Inc. [[SOHU]] . If OSTK opens up big, short it right away.
SOUTH SHORE: Yingli Green Energy Hold. Co. Ltd. (ADR) [[YGE]] reports in the morning, and First Solar, Inc. [[FSLR]] is looking weak. FSLR is your correlation stock…
- if YGE has selling pressure + FSLR stays under 269, feel free to short Yingli Green Energy Hold. Co. Ltd. (ADR) [[YGE]] for the day.
- If YGE reports and squeezes the shorts, Yingli Green Energy Hold. Co. Ltd. (ADR) [[YGE]] is your correlation stock to get long the other oversold solars like Canadian Solar Inc. [[CSIQ]] , JA Solar Holdings Co., Ltd. (ADR) [[JASO]] , and maybe [[RSOL]] .
WEST SIDE: USO @ 95 is a special spot for oil. Oil trades at 119, so I’m prognosticating that it will regain the 120 support and run up a few dollars. I mentioned earlier in my comments that ALL commodity stocks were sold off heading into the FED meeting yesterday, therefore, look for dip-buying, now that we know the Fed won’t raise rates. Wednesday we get inventory numbers, and many analyst are thinking oil will drop yet again. I got my contrian cape on. Try, GMX Resources Inc. [[GMXR]] , Petrohawk Energy Corporation [[HK]] , Patriot Coal Corporation [[PCX]] , International Coal Group, Inc. [[ICO]] , Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Sociedad Quimica y Minera (ADR) [[SQM]] , Potash Corp./Saskatchewan (USA) [[POT]] , Goldcorp Inc. (USA) [[GG]] for a bounce.
EAST SIDE: There’s always the possibility that the rally continues. If so, make sure all major correlation stocks give you the green flag… CSCO (needs follow through) GOOG (tech), CME (for exchanges), BIDU (for Chinese plays), CAL (for airlines). You get that set up, then get long any stocks in those sectors.
- If you get the BIDU+CAL breakout combo, you may be able to catch a bounce in PCLN. Also, get long the stocks that had strong closes yesterday… China Medical Technologies, Inc. (ADR) [[CMED]] , Amazon.com, Inc. [[AMZN]] , Almost Family, Inc. [[AFAM]] , Under Armour, Inc. [[UA]] , Overstock.com, Inc. [[OSTK]] .
- however, if we have a bearish day, short stocks that were weak yesterday, like all those girly stocks I mentioned before… IntercontinentalExchange, Inc. [[ICE]] , First Solar, Inc. [[FSLR]] , Las Vegas Sands Corp. [[LVS]] , Wynn Resorts, Limited [[WYNN]] .
Here’s a link to actual surf spots on Oahu. I like bowls at Ala Moana or Kewalo Basin, and i usually take mainland friends to Duke’s at Waikiki.
If you have any surf spots you spot tomorrow, leave a comment. See you at WallStreak, where the waves keep coming!
Note to self… we could also see a relief rally in shippers, like DRYS and TBSI, which are approaching temporary supports.
If you enjoy the content at iBankCoin, please follow us on Twitter
I forgot to mention VISN! go with the trend on this one. don’t call any tops or bottoms, just go with the trend. this is a powerful momo stock that has day-long trends.
I recall the kids from our local high school going to New Smyrna Beach and Cocoa Beach to surf. I remember a friend of my son who was a math genius (now at Cal Tech) who would skip school to surf.
Yo yo GIO!
I’m digging the “surfing trades” man! For some reason this approach kinda makes sense to me…?
Good trade with the rest of the fellas on FCX. But c’mon.. you couldn’t have clued us into this one a little bit earlier yesterday afternoon?
Keep up the awesome work, shaka brah.
ya, getting into FCX before close yesterday would have been swell or did you guys buy after hours ?- anyways, thanks for your insights
some After-Market notables
-ANDE, AUY, SINA
less notables, but interesting
-FBN, NHP, RWT, RJET
I have a more comprehensive listing on my blog, its too repetitive to list the details here…
Ah, Dukes … Listen & Enjoy …
http://henrykapono.com/dukes.asp
Thanks folks! Today, the waves are being made in energy. We made the FCX trade at the end of the day, so by the time it posted, market closed. However, I did tell you guys I was going to enter swing longs in energy about 3 posts ago here http://ibankcoin.com/gioblog/?p=1504#comments
Hope that helps!
Hey Donny.. Henry Kapono? Now your getting to the classics! Have you heard of Kalapana? They were my favorite music group growing up!
That’s cool GIO… I made my (similar) play SLW, buying the dip there.
How long do you think you’ll hold onto FCX? What’s the signal to move out?
I found a few more surf spots for you guys:
1) VISN had huge dip buying. trend is up
2) the waves are picking up in the shippers. this is a relief rally so you might want to pick up some DRYS.
3) If market goes green, LULU may form a temporary bottom here, right above 21.
If you like wave trading, make sure you read my earlier posts on “correlation stocks”, http://ibankcoin.com/gioblog/?p=1496 , it’s imperative that you understant this concept.
Heckler… once again, it’s all about using “correlation-stocks” to find your entry/exit points. My correlation-“stock” is actually the oil commodity.
http://futures.tradingcharts.com/chart/CO/W
Oil for a copper stock? … yes! I made everything simpler by grouping all commodity stocks to trend with oil.
For now, I think oil will rebound, so I’m holding FCX. If oil gets back to 117, then I will sell.
I’m not very familiar with Kalapana … I know they were popular. Their music is on iTunes, … I’ll download a few.
I saw Henry play at Duke’s in Waikiki last year, and loved it. There’s nothing cooler than hanging out, copping a buzz while tossing a few brews back, and listening to live music as the sun sets over Waikiki. There’s actually a Duke’s in Huntington Beach, about 15 miles from my home. Though, it’s not the same as the islands.
BTW, I believe Crude is going to drop further.
AFAM almost 40!
ya Donny and how about them there bikini with Lei chicks at Duke’s Waikiki? you got that going in Huntington also?
Duke’s at Waikiki wins. We go there for breakfast. Where else can you find a restaurant that is so close to the beach?
Paddling out… catching an energy wave, HK, for a day trade. Looks like the second set coming in.
The Shorebird for cocktails, Moose McGillicuddy’s for nightcaps.
Sold HK! Nice glassy set off of USO rebound. 😉
LVS starting to look very tasty here (short, of course)… right at the 38% fib for the third time in as many weeks…
Cue up the Sheryl Crowe.
___
Hey Sniper… try Dave and Busters Wednesday night after 7. College hangout! My classy friends also like Moose McGillicuddy’s, but I haven’t been there. Have you been to the Hanohano room? Gorgeous. The BEST view of Waikiki at night! I have a friend who plays the piano and sings there. He’s like Sinatra.