Let me start by saying I am not thrilled with the action in the S&P 500. I was discussing this with one of my most distinguished readers, gentleman UncleBuccs. My chart brain sees lower prices in store before news highs are achieved.
So I did what any responsible person would do when confronted with these “facts” …I bought stocks.
I still have some cash on the books, about 25% which is about the highest my cash has been this year. But I have a huge position in RVLT, a huge position in ONVO, and a huge position in CREE. My next largest position is USO because I think oil is just going to surprise everyone and rip tits into year end, taxing the tight wad consumer before x-mas.
Everything else is ¾ size or smaller: LO, Z, GOGO
Then my slow money: F and O
Then a tiny IMMR I keep for sport and this stupid MJNA long—down 20% waiting for a pop to sell into. It will come. It is a matter of time not will.
I traded the futures less this week, especially after I got gang banged by algorithms Tuesday. I took a conservative trade in the /ES yesterday that worked out well. Today, that same conservative nature caused me to miss an idea I mapped out very well. Oh well, there is always next week. /NQ is looking promising as anything I have ever seen—both on a discretionary and algorithmic basis.
About this time every week I am overcome with a huge feeling of gratefulness. Thank you for reading along. I love this work and interacting with my internet people. Have a great weekend.
Of course the news flow had some merit. After all there were serious talks occurring in Washington DC, the epicenter of insider trading. But save me the wordy discussions, I can see their footprints in the walk of price.
Funny to see former Detroit Mayor Kilpatrick getting 28 years in the hole while the Federal government plays budgetary chicken. I never considered Kwame’s actions worse than your average politician, they only seemed move obvious. I promise you, the city of Detroit is a better off with Big Meech behind bars a solid 20-something years.
Enough, let’s discuss what happened here today. We gapped up huge overnight and drove hard off the open. At that point it was simply a matter of finding a way to grab on to the long side and hold on for one hell of a ride.
We had upside targets in mind and they were achieved before 11am. These targets were far from the opening print and I thought it may take us all day, if not into the weekend to achieve the prices.
But there’s eager money out there, yearning for another hit.
What worked for me today?
LED stocks crushed today—all of them. The industry is on fire.
Buying GOGO blood yesterday, veddy nice
Vapor smokes via Newport cigarette maker LO – that is a quality company with a quality chart. Don’t be blu [sic] if you missed today’s move because it is just getting started. Nice dividend too.
Measured move, market profile, and Fibonacci confluence – My most profitable day trade was a four handle short in the spooz.
My /NQ algo. It is starting to worry me, it is on a roll
The mighty PPT
What didn’t work?
ONVO was quiet…almost too quiet
Z didn’t make much of a bounce
Cash, lazy lazy cash
There was a bit of selling into the bell and the waters are still choppy, however cool minds prevailed and top calling continues to be a daunting task. Tomorrow will be the challenging day after a trend day. The location of today’s close also precludes chop in store for tomorrow.
Should we not chop, but instead drive higher or lower, it would be a surprise and a reason to adjust your stance.
“An organ printer, an iPhone with airborne internet access, a real estate app, haptics, and LED light bulbs”
NOTHING! Not quite.
They are all technologies that will make the coming years exponentially more kickass than 2013. I hold stock in all of them via ONVO, GOGO, Z, IMMR, RVLT, and CREE respectively. These are real companies adding value to society. On the contrary, we have the god damned politicians and their media outlet mouth pieces. There is no value being created by politics.
And I have no alternative to offer because I never follow politics. Hell, I have antenna teevee and really only watch Jeopardy. Therefore I don’t talk politics. There, I said it. I know it is ignorant and I cannot care. I have too much business to tend to.
I was a buyer of stocks today. I am siding with the robots. I cut my twitter exposure down to the bear [sic] minimum. It is too noisy. My squiggly lines say buy for a quick hit of crack rock and then GTFO, therefore I am doing exactly that.
My slow money is still in place via F, O, LO, and USO
I was not actively trading the /ES today, but my algo was able to take two trades. One earned 1.75 handles and the other was breakeven.
My portfolio had a very strong day today, up nearly three percent and putting me back near my high watermark of the year. I’ve been trading my butt off to finance these investments in RVLT and CREE. As a result, when RVLT and CREE go up, I have big days.
Let’s discuss RVLT a bit. If we consider the sentiment chart idea, we find ourselves within the panic bounce. To me this means any rally we see over the next few days/weeks is likely to fail. How do you like that? I’m telling you right now that my largest position is involved in a failed rally. And that’s okay because my timeframe on this position is multi-year. Let’s hope I’m correct so we can have better opportunities to buy even more shares. Another anecdotal piece of evidence calling this rally into question is one of its origins: a {cringe} Seeking Alpha report. The bozos at SA (as the hipsters call them) were greased to help somebody get out of a seriously underwater position. This is just a theory, but their track record is eroding though the diligent work of iBankCoin Chief Market Strategist “The Fly”. It puts a foul stink on the whole move. If it wasn’t a pleasant twenty percent pressure release valve I would be even more ornery.
However, CREE reported they have retrofitted the NASA headquarters and done so quite successfully. Hmm, Cree really knows how to land the big fish, yes? Wrong! The biggest fish tend to be the wisest fish—having survived years of fishing and boat propellers. If/when these gigantic fish encounter a situation where their lighting is called into question, the data will unequivocally point them in the direction of LEDs. Any entity that weighs the financial impact of any business decision will see the cost benefit of retrofitting their existing light structure with LEDs. And CREE, RVLT, OESX, AIXG, RBCN, and GTAT will benefit. Look at GTAT…shorts better pray to their demon lords that sadistic seven holds as resistance. Otherwise the light, the good, shall prevail.
Other big winners today were TRLA, CLF, and END. Readers, I’ve been clear with my calls. It’s up to you to wrap risk around them. I scaled a small piece of TRLA off because I take profit when the markets giveth.
My SKF has gone red by about three percent. Tomorrow it comes to an interesting fork in the road where I’ll either buy more, do nothing, or scratch the trade. I was hesitant to add to the position today when the SPY absolutely refused to roll over. Checking back in just now, it appears it did manage to roll, BARELY. Until I see more confirmation, I’m not loving this trade.
END needs to rip, I mean, come’on now, we’ve been flirting with the idea of going all the way for weeks. Why not get past this game of just the tip as @chessNwine often references? I think we do, hence why I haven’t scaled any off yet.
CLF is tricky. It has been dead money for so long and now it shows signs of life. Do we trust it? Or do we take our six percent and dump this cheap trick? TBD
In closing, I kicked my cash up to 25 percent and could like to see some market weakness to buy my favorite stocks sitting on my wish list—names like Z, SFM, GOGO, AMBA, ADHD, and VPCO.
