What is going on in the market today? I thought the Bulls lost to the Celtics already. Market is on fire.
Is today’s tape fueled by the bulls? Yes, but mostly no. To me it feels like another extension on the rally due to weak players:
1) weak shorts covering along the tail of the rally. I call them rats.
2) foolish longs jumping on buying anything “just because”
… usually this combo leads to a turning point on the tape. Probably the worst thing about this extended rally above Dow 8,000 is that it has been given that extra push by penny-looking stocks and beat down commodities. If you’re long, do so for a trade, but be quick to take most profits. If you are short… well, I just hope you are averaging in. Shorts need to “buy-time” by averaging in in smaller increments.
In a real bull rally, you want leaders moving the tape. Here is what is troubling for me today. Look at the party going on in some ugly stocks:
CROX +32%
JASO +14%
YGE +13%
FTK +21%
And finally, the VIX is virtually flat! I had VIX <34.50 as my short the market entry point, but this 35 spot is stubborn. I’m not really sure how much more the bulls can take this thing higher so I will split my entry points to two areas. One under 34.50, and the other at 33.80.
Wedging into a “big move.” The VIX ETN is making the VIX harder to read. Try to adjust to it.
I’ll be tweeting the Lakers Rockets game today. I predict Odom goes crazy.
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Thanks for the VIX update
After seeing that play, all i can think about is the finals and kobe and lebron going at it. Clash of the titans!
P. Pierce is a mangy & arrogant old bear. Ray Allen, however, is the King of the Celtics, and when he plays, the Celtics become bulls.
Jazz would have taken you to 7 if Memo would have been healthy.
Good post too, thanks for everything
Can’t blame Pierce for being ornery … if you took it to the rack as much as he does without the benefit of a foul call you’d get mangy too.
I’m sure the lakers are going to kick our ass, but kind of like going short these days – I’m still going to pull for em. Had some good times back in the “clutch city” days. I always like the underdogs, anyway – and that we definitely are.
Re VIX – have you read any articles that discuss the potential impact of the ETN on it? It sure looks like it is ready to btfo (up and out, that is)
@bullethead … too bad T-Mac is a liability to Rockets defense. if he were a defender, Rockets are a top 3 team in the league. As for the ETN… I don’t like it yet. But if you find something let me know.
@Gwar … Celts need KG. Can’t wait to see how they handle Magic’s inside-out game with Dwight Howard abusing everyone (no KG). And LA should have swept; Deron is still one of my favorite point guards though.
All you new GMCR fans will be happy to know that as of tomorrow, you will be able to buy LEAPs (Jan’10 & Jan’11) on the said name! Woo-woo!
Hey Gio…Trader Stewie suggested I connect with you to exchange notes about trading from Hawaii. I live in Hilo and am curious to learn what strategies you like best given our time differences from NYC. Hope to hear from you.
Aloha,
John
Ahhh yeeeaaaa, sweet video of Kobe dunking on Yao. Kobe! Kobe! Kobe! He’s da Man. hey I didn’t catch the final score, how many points did the Lakers pound the Rockets by?
Lakers were flat. The analysts were predicting that Houston had the best chance to win @L.A. in game 1. It happened…
As troubling as the Lakers in lacking consistency, it is still amazing that they are able to hang around when they stink it up in shooting. Wednesday is will be a fun game to watch. Pau & Bynum will have to step up… They might need to put Ariza on Houston’s PG.
Anyway, this series could go 7 games.
may the “clutch city” mojo continue …. developing
Hi Jkai… welcome fellow islander. I’m always happy to find other hawaii traders. You can email me at [email protected]
What are your goals trading? What trading system are you comfortable with? Hawaii has a good advantage in swing trading, but a very significant disadvantage to day-traders… well, that depends. You can get off “work” by 11am. If you’re like me, and sleep is not a necessity than it might be for you. lol. anyway, stop by here or email me.
-gio-
It’s weird how good the rockets are without tmac. Watching my blazers get shut down by the rocket defense was extremely frustrating to watch, but i must say i was impressed. I can definitely see a 6 or 7 game series between the lakers and rockets.
I was more afraid of Blazers, but Rockets got some major D. Jackson needs to redo his lineup. when kobe feels better, he should guard artest, and Farmer should play point. anyone else think Gasol played like a girl last night?
No doubt your next post will include a comment on the VIX close today…
Lowest since Friday Sept 26th. And what a fun day the 29th was!