CRUSHECTOMY

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.

Also buying CENX right here at 12.50

Care to take a shot?

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!

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 …

No, I’m not a morning person. I hate the morn. As far as I’m concerned, I’d be happy if the sun never came up. That’s why I now reside in the Lapland with my herd of Reindeer. Yet, here I am banging my digits in the early morning hours.

I’m excited to be asked to join the site of Le Fly. I’ve admired his winship, lyrical prose and his “sometimes wrong but never in doubt” attitude. I’m nowhere near as witty or erudite as Mr. Fly, as anonymity breeds certain freedoms, but I promise to add value…

I will be posting intraday market observations and I’ll make near-term directional calls when appropriate. I will also be posting my own charts of the major indices and some of my favorite trades–also when appropriate.

Please visit weekdays to spy the simulcast of my radio show at 9am EST. Register with uStream to post comments, or use twitter @createcapital. Please let me know what I can do better, but don’t get carried away or I’ll have to pull a heavy Sicilian pie out of the oven and slap you with those hot, square slices…

Check this out.

EBAY: SHORT 24.00, STOP 26.00, TARGET 18.00