Let me get you hip to a recurring theme in this market.  If a company beats analyst expectations and rips higher the next session, it will continue to run.  Look at PPC, GS, and CREE for example.  They gap and go.  This type of participation is a blaring signal of high demand for quality equities.  Risk is being put on in a big way.

We had a strong January, we had a funny little Super Bowl with a power outage, and now we have an EPIC SNOW STORM.  All of this happened amidst indices making new highs.

I come to iBankCoin late at night and dig into The PPT, building beautiful watchlists and highlighting industries that I like.  Then the session starts and all of those names lose my interest.  Then, by an invisible hooded force, I start buying social names.  I cannot explain this behavior.  All I imagine is mysterious hooded monks chanting in a dim-lit stone room to the stock gods, willing participants into the social stocks.  Crazy I know.

I’ve been a buyer all morning.  I bought more ANGI up here, I bought more ZNGA up here, and I bought more FB down around here.  I may have a nasty case of rally fever, be forewarned.

Other buys today: HES and RH

I’m eyeing a couple other stocks as we enter the afternoon.  Let’s see how they close’em.

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I was welcomed this morning by a lovely coat of snow.  So lovely, in fact, it wiped out the internet in my home.  Losing the internet at my home means the whole show comes to a screeching halt.  I’m not unable to toggle the lighting and heat from my smart phone like I so enjoy.  My NFLX is out and that means there’s only antenna teevee.  And I most certainly can not pen lovely blog pieces full for media for my interweb people.

Thus I had to adventure drive into the office so I could trade these STAACKS.

If you are long, there is very little that should concern you.  The wind is at your back and prior discrepancies left behind in the tape have been settled by in an orderly auction by the mafia in Chicago.  If you’re short, a clown rather, I wish you high level risk management.  Please trade your positions well.

Today’s plan is to wind up exposure as high as possible into quality chart setups going into the weekend.

My assistant has fetched me a hot cut of DNKN coffee and it’s time to do work.  Good day.

TOP PICK: ANGI

MOVES MADE THUS FAR: Sold TZA and ANR, bought more FB

UPDATE: bought HES

UPDATE II: bought RH

UPDATE the Third: bought ZNGA

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And now I patiently await tomorrow’s trading session.  I didn’t do much today: watched some surfing videos, put some finishing touches on a gnarly excursion, stared out the window, stared at a few tickers, and you get the point.  I was keeping myself busy to prevent buying everything.  I see setups emerging all over the place, but none quite triggered.  So I sit, enforcing discipline.

The good news is the S&P finally put in a quality auction encompassing 1498-1502.  I thought it may never happen.  Shedding my TZA clown shoes near the LOD may have been prudent, but I remain shoed up into Friday’s trade.  The fact of the matter is we finally put in an auction at these levels and now we can put them to rest.  If the bulls show up tomorrow they can drive a stake straight into the hearts of the flailing shorts.  I was 100% long into last weekend, and I may go back to that exposure into the weekend.  My broker loves me.

I sold out of BBY today.  It was my Super Bowl play and their commercial was a non-event.  They’re store is a non-event.  I remember when going to Best Buy was the thing to do.  Now if anyone offers me the opportunity to tag along I kindly refuse.  EVER HEARD OF NAPSTER BRAH?  It’s all there and elsewhere on the internets.

Completely aside:  You don’t realize how small your desk is until there’s a stack of work three feet high next to you.  I couldn’t care less.  I may actually outsource this brainless task.

BOTTOM LINE:  (There’s always a bottom line) We traded a range that has been a cock fight for weeks.  The bulls came out the victors and clawed back to unch (pronounced “OOO-N-CH”) after getting shot out of circus cannons this morning.  Follow through tomorrow equals clown bones everywhere for the victorious bull and I will buy more stocks.

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Today was a relatively constructive day for the bulls.  They managed to fend off a nasty lunchtime selloff.  There were several very curious features to today’s profile which I will cover tomorrow morning.  Whether or not you keep a profile while you trade, a normal price chart shows an inside day. This can signal balance and can also give way to reversal.  We closed in the upper third of the range on the S&P futures and the VPOC was shifted slightly higher.  These developments support higher equity prices

I took action early on scaling off ½ my ZNGA position around $2.80 and selling SU.  Like a chump, I did not realize SU reported pre-market and was corrected for my oversight.  I’m pleased to report I sold SU near the high today by applying chessNwine’s tried-and-true method of maintaining discipline and cutting shares when surprised.  His surprises-mind you-never come in the form of prescheduled earnings.

When the market dropped off rather unexpectedly I cut the net of my TSL position.  After doing so I reflected on the days I owned TSL, and wished I had it back.  Dumping her cold out of the blue while she was still performing well felt forced.  The stock still looks great.  Finally, I strapped a pair of clown shoes on and jumped into the burning building that is TZA.  I didn’t bottom tick the market, or top tick TZA, but I did buy it at a less-than-desirable location.

All of these lateral moves resulted in a cash position of 20% and a 5% position in TZA.  I feel underinvested already.

Top picks into the week’s end: ANR & ANGI…Zee’s have been cast aside for A’s in my binary ticker approach.  I still like APP too.  And I’m big dict in MOS & TPX if you didn’t catch that.

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Keep an eye on Angie’s List this week as it flags near this key level. I love this ancillary housing play with a splash of social web experience. I like their recurring income stream via subscriber service and their disruption of the contractor game. Much like hotels cringe at the thought of a bad TRIP review, contractors must do the same. These companies are the real deal and ANGI shrugged off the downdraft in FB post earnings.

There are several talking points that keep me bullish on this name, but the core reason I’m long is this sexy little chart:

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As we near the close I’ve decided to hold my shares of ZNGA long into earnings.  Rhino just came out with a well thought out piece on why the company is a short.  This is not good.  His batting average is high on earning’s plays.  However, like RaginCajun I’ve traded the name around these last few months building in a nice buffer on my position.  The joy of scaling, if you will.

With my colleagues thoughts disclosed and considering there’s three of us on this play (!) I thought I should give my two cents.  I have liked the chart for several weeks now.  It’s trudging along, popping eight percent on occasion, then being faded.  The company itself I ABSOLUTELY DESPISE.  I grew up playing real video games like Mario brothers and Street Fighter.  Then I moved onto Mario Kart and Golden Eye.  I was briefly addicted to Super Mario 3 (!) often timing how fast I could beat the game (blow the whistle toot toot!).  My days playing games trailed off around Halo 2 as I began to realize what a massive waste of time the games were.  Oh, somewhere in there I played a ton of Grand Theft Auto and Roller Coaster Tycoon.

Then they started making really lame video games that people played on Facebook and their stupid smart phones.  These games suck, all of them.  The people who play them are sloths, high on the $MJNA. 

OUR COUNTRY is full of sloth like creatures, and they play these wicked games.  That is why I’m long this dildo company into earnings.

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Today was the quintessential example of why I scale out of stocks at logical price levels.  Check out the intraday action in TSL:

Pull up a daily chart of TSL and put your eyes on $5.75.  That’s a logical scale point.  If you want to be a chart chump like me you best learn to spot these levels and trade accordingly.  Now I still hold a 2/3 position but I’ve already booked over a 10% gain. 

I don’t love having a full size position on.  Until I get my first scale I’m looking at a potential for a big loss.  However, I know my probabilities and when to push my edge.  Now that I’ve booked a gain, I can put a stop in place and allow the market to decide whether I will get some cream or just the necessary bread and butter to be a consistently profitable trader.

Today Trina printed a huge upside shadow suggesting the presence of an aggressive–reactive seller.  It’s probably a conservative (hehehe, I kid).  I like to examine how a stock trades after such an escapade as it gives me tons of information.  Was today enough to work off the HUGE overhead supply from last year or will newly initiated buyers start hitting the exit too?

I couldn’t care less.  My job here is done.

I have to post the edited version of this song, because the video is essential:

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Coming into the day 100% long I expected to get a worse beating than this.  The broad markets are down today and it’s taking most of my portfolio with it.  Before it had a chance to sink me to a -2% day, the stock gods blessed me with a manic 8% run in TSL, my former largest position mind you.  Former, mind you, because I scaled 1/3 off at $5.75.  I told you hoping any home gamers would do likewise.  I sold Goldman too, all of it, because if any sector is due for correction it’s the financials which have been on rip for three months.  All this action raised my book to 15% cash going into the gap fill lower.  We talked all about that too.

Expect my tenor when addressing you to change modestly going forward.  My days of being premier in these halls are numbered.  And that’s fine.  I will add this feather to my cap and continue on my merry way (no homo).  As a trader you must always stay humble to the markets.  They are much larger than any one of us.  They are the collective action of trillions of dollars sloshing around, much like the tides of the oceans.  I will continue to be water, but I hate all of you.  Well, most of you.

The levels we currently are experiencing were highlighted this morning.  So far, no real damage has been done to the bull case.  We’re in a big range and we’re near the bracket low.  This could be an excellent buying opportunity.  I would like to see the NVPOC I mentioned earlier get tested.  That’s an interesting price level that could display a high degree of sentiment.

We have ZNGA reporting tomorrow and that’s sure to disappoint many social degenerates.  I plan to hold some long exposure through their earnings because MJNA is ripping and the CEO of this company promotes the use of MJNA declaring 4/20 a work holiday.  Good for you.

Bottom line: this sell off is contained until it isn’t, readers want to throw mashed potatoes at each other rather than banking coin, and marijuana is my basis for speculating ZNGA rips post earnings.

As of this writing my book is down 1.2%

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The solar industry is seeing solid gains so far this session. Keep these stocks on your radar. Many boast healthy charts.

Details and charts via finviz.com

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I don’t think many people take me seriously.  The funny thing about a serious person is how funny you really are.  You’re living a joke of a life.  When I had a clear reading of the tea leaves this morning, I sent out the following tweet (edit: bad spelling and all):

Petal to the metal

— Raul (@IndexModel) February 1, 2013

I don’t know how many people realize this, but I always put my money where my mouth (pen/keyboard?) is. Always. If something is worth talking about, it’s worth putting your skin on the line. As for business endeavors, I firmly believe in giving 100% as anything less is lazy at best and whimsical at the absolute worst.

So I spent the remainder of the session ratcheting up my long exposure and taking my cash down to zero. Yes, I’m 100% long. I haven’t been all-in in over two years. My positions range from high quality to downright degeneracy. It is my hope that the Super Bowl stimulates obese spectators to jam their nacho covered hands into their tiny pockets to grab an inked pen and write a reminder on their arm to buy stocks on Monday.

Wow my thesis sounds really flimsy now that I write it down.

I have many positions, but I’ve placed my primary bets on TSL, SU, GS, SINA, ANGI, and VHC.

Trina, Susan, and Angie are my girls this weekend.

Trade’em well!

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