A Counter-trend, counter trend…

Holy crap! The dollar is getting spanked and commodities—primarily oil (up 3% today) are skyrocketing in a dynamic bounceback from the last two weeks of hammering (profit-taking).

There is no real news that is fueling the markets. This is simply the first bounce from the first correction that broke the latest breakout. The December breakout was broken and technically failed. That was the first time that occurred since July. So traders and investors began to “gird their loins” for the pullback to SPX 1040 then 1000 then 960. But it doesn’t work that way, son.

As we marginally broke the key 1080 area on the SPX, we figured on a marginal breakdown and then a recovery to the upper portion of our trading range, at DOW 10500, SPX 1120 and Nasdaq COMP 2225. That is why we reco’d a financial Goldman Sachs Group, Inc. [[GS]] , a material Century Aluminum Company [[CENX]]  and a semi-capital equipment stock Kulicke and Soffa Industries Inc. [[KLIC]] . And we remain short eBay Inc. [[EBAY]] .

We are profitable on all four positions, an average of 4%. Seems like chump change, but not bad for a couple of days. Quite franky, I’m not looking to hit home runs. Just single and doubles. All day long. Don’t forget to keep your stops at the appointed levels.

You should be looking at General Electric Company [[GE]] of all things. The low 17’s is a monster breakout for the stock.