The Pair Trade

Tue Jan 27, 2009 10:46am EST 16

Long RIMM (stop right below $49)

Short PALM

PALM finally broke down, and I’m looking for a continued move lower.

More of the Same

Mon Jan 26, 2009 9:23pm EST 18

We are in a deadly range where both sides fight for control. At his point, it’s almost best to sit out until we get some clarity, or else get chopped to pieces.

If you caught my 3rd tier video last night, you would have noticed I was looking for a possible breakout in the S&P. We got the breakout immediately, but it failed to have any follow through– what a surprise.

Looking at the chart below, the red lines were drawn in the video. As you can see we got a breakout at the open, and then a nice pullback right to that support line– this is good news. The market is continuing to make a higher low after the bloody Obama inauguration day.

As you can see I have added a new line, the blue one, this is now the range I am watching: above 850, and I’m looking for a powerful rally, below our red support line, and I’m looking for November lows.

Current open positions:

Long JPM (from $19)
Long GOOG
Long DXO
Long JASO
Long FAS
Short PALM
Short XOM

Update: RIMM looks like a slam dunk, set stop right below $49.

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Weekly Watchlist

Mon Jan 26, 2009 12:18am EST 11

[youtube:http://www.youtube.com/watch?v=k6dvsbaXutE 450 300]

Top 10 Weekly Watchlist:

S&P 500, bullish if stays above 825
$TRANS, watch for a significant breakdown @ 2,900
VIX, breakdown below $46
EGO, long above $8.15
SLW, long above $7
USO, long above $33
PALM, watch for breakout or breakdown
S, watch for strength
GME, long above $26.50
GS, short on financial weakness

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Jeff Macke Interview

Sun Jan 25, 2009 2:56pm EST 29

[youtube:http://www.youtube.com/watch?v=ngChYQyrz5w 450 300] [youtube:http://www.youtube.com/watch?v=qm68hWwmeSA 450 300] [youtube:http://www.youtube.com/watch?v=TxrSX0xIkDA 450 300]

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