Long Feared…

Ahhh…The long feared handoff; from a marketplace fed and supported by the FED acting as specialist, to a market that must “find its own funds”. Scary!

The timing of this announcement was certainly a surprise. But Bernanke and other FED heads told us this was coming. The latest comments came yesterday from Plosser–a non-voting member. The end date of FED MBS buying has been widely reported to be March 1st. That free money, trading shitty MBS’s for cash to put into the stock market has ended. (Don’t worry though, banks can still borrow at 1/2% and lend back to the Treasury for now almost 4% for a 10 year note).

Futures are down, about 50 Dow points at of 5:30pm and I bet we open lower anywhere between 50-100 points, and then finish the day up that much.

Gentlemans bet? Wanna bet a sandwich? A nice hot slice of pizza perhaps?

The SPX is sitting right at 1100. It is the midpoint between the markets high and the correction low. A perfect 50% retracement, all made since last week. If the bounceback rally were weak, it may have only bounced to make back about 1/3rd of the loss before going on to make a new range low. Instead, the major indices are overbought and pushing on resistance while bearishness abounds.

I’m not remaining near-term bullish simply becasue market participants are getting bearish. Rather, I believe we need to define the upper portion of our new trading range. Sure, we’re running a flag formation that some may perceive as bearish, but it could also be interpreted as a new and pretty near-term uptrend. Ahh, but there’s that overbought again.

As you know, markets love to ramp when they’re overbought if the path of least resistance is higher. And vice versa. So expect some time to pass–maybe only a few days–of no progress or a pullback to 1080 or so to work off the overbought before moving up and over the 1105 area of resistance. Our target remains the 1120 area.

Maybe we should just forget everything we know about technicals and fundamentals and just do exactly the opposite of what the dollar is doing…Simple, huh? More later…

I am proud to be giving away valuable content to Le Fly’s loving followers. But the majority of my universe, the stock ideas and parameters, as well as the market commentary is found on my site, http://createcapital.com

In addition, you can see all of the pretty charts that will show you exactly what I am seeing. It is worth the price of admission, so visit and give my free trial a spin.

Who knows, maybe I’ll even offer a special subscription to the Fly’s followers in the upcoming weeks and months. They’ll be plenty to come on the CreateCoin blog site, but for now, come and visit for the real deal…

Shameless, I know…

I’ve been here, hangin with the Fly for a few weeks now and I feel the need to remind myself that all stocks are just a trade–especially when the market is no longer trending higher. Let me also remind myself that we are establishing a new trading range with boundaries of SPX 1040 to the 1120 area. 

Here we are, marching towards the top-end of our trading range, as forecast with regular predictability since just after my arrival. I must also remind myself that I called for a test of 1040 the minute I got here. We did that, now we’re doing this.

SELL TARGETS:

Hudson City Bancorp, Inc. [[HCBK]] –Bought 12.80. Target 15,  and a 4.5% yield .
Telecom Corp of New Zealand (ADR) [[NZT]] –Bought 8.00. Target 10, and a 8% yield .
Oceaneering International [[OII]] –Bought 53.50. Trading target 60.50.
Goldman Sachs Group, Inc. [[GS]] –Bought 149.00. Trading target 170.
Century Aluminum Company [[CENX]] –Average cost 11.50. Trading target 14.50.
Kulicke and Soffa Industries Inc. [[KLIC]] –Bought 4.90. Target 7.75.
eBay Inc. [[EBAY]] –Shorted 24. Trading target is 19.50.

Dividend stocks, low and high priced stocks and even a short. Well rounded. I don’t care if you sell them all right now and ring the bell. You’re a big boy, put on your big boy pants!

I’m batting 1000 with an average gain of 12.67%. In less than 3 weeks. Without a momentum market. Beginner’s luck? I don’t think so, bitches…

Markets are bouncing around and whipsawing all the extreme bulls and bears. Movements are fast and furious, but locked in a tightening range and in a near-term downtrend.

We’ve clearly established the upper boundaries of the range (SPX 1100-1120), but we are still trying to further define the parameters of the lower end of the range. So far, it is 1045, but it could easily be slightly lower because we may need to break the lows to get everyone scared–before moving back to the upper end of the range–again.

I will be working on Monday morning. I plan on doing my radio show live and I’ll be simulcasting it on Ustream as well. I want the holiday show to be all about YOU. Send me your questions during the show and on the chat window! Call into the show, 877-777-7713. Stocks, indices, commodities, strategy, anything you want to talk about. I’ll be doing the show for 2 HOURS, from 8am to 10am est.

If anyone complains that they don’t get unbiased help, they won’t be able to whine anymore. Plus it is funking FREE, so be there!