What a difference a day makes! For the past few days everyone was quaking in their boots and getting ready for the end of the government engineered rally. The end of the world was neigh.

But in our comments yesterday, we plainly stated that you should be long and not short. That positioning does not come from any ingrained position or point of view. It simply came from the near-term technical status of the market. Major support was tested and held. Bernanke was confirmed. Everyone knows that banks will get less free money, but still get free money nonetheless.

The bottom-end of our trading range looks like it has been established for now. Expect the major indices to rally to major resistance and further establish what may be an important top. Some may think that we blast right through, but I doubt it.

Keep your targets clear: SPX 1115 then 1130, Nasdaq COMP 2225 then 2275.

I’m loving the simulcast of the radio show. If there are any suggetions to make it better, please let me know. Constructive, please….

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So, we are back to a 2 way market. These past day’s are certainly proof of that. But moves in either direction become exacerbated by our friends, the momentum HFT traders. Plus, today, all NYSE quotes are suspect. But there is no doubt that there is hot money leaving the market.

The markets have lived on government largess. Now, payback will be a bitch. This is the reason that this has been one of the most hated rallies in the history of markets. Because it was “engineered”, bought and paid for with newly created money, courtesy of Uncle Ben and Aunt Timmy.

So, for now, let the market release the one-way (bullish) trader-types and establish the new low area for our new, and possible extended, trading range. Many stocks are in the process of testing their primary breakouts. This is the first area of support. There may be some overshoot, but don’t expect much worse here. Much of the near-term damage has already been done and we will go through a period of hammering out the recent lows before bottoming and bouncing for real.

Our GS long trade remains as $149 is a good entry. Everyone was expecting the Prez to finger them as responsible for the world’s maladies and the earthquake in Haiti. But since they were not, then this remains a good entry. BUT keep your stop tight at 147.

Our CENX long  is fairing worse as metals are getting crushed across the board. Super-near-term traders should stop on this break of 12, down something less than 5%. But I plan on doubling up near 11.

Our EBAY short was done above 24 and that is working its way towards testing the 20 area.

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Also buying CENX right here at 12.50

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Care to take a shot?

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Today is not your typical Wednesday:

 

Congressional hearings to make fun of the idiots who run the FED & Treasury and the criminal bailout of AIG.

A FED meeting where they dare not say or do anything.

Uncle Ben on the line with a vote tomorrow.

State of the Union tonight.

Apples’ tablet.

Major indices & commodities at first major support and trying to make a stand.

Financial & media Hoi-Polloi at Davos adding no value to anyone but themselves and their greatness.

New home sales suck.

 

I would not be shorting financials here. I would rather be long GS @ 150 than short…Pay attention to semi-capital equipment for the turn.

I will be be posting live, streaming HD-video during the day on the home page when appropriate for market updates. Stay tuned!

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Apple on track for $60B rev, 14B net. Should sell at a multiple of 30x but discounted to 20X. 900m shares out @ 20x= $280 year end target, but add $20 per share for the tablet, for good measure. Target $300… Of course the shark will be jumped by every publishing analyst tomorrow …

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