iBankCoin
Read Scott here on iBankCoin and also at http://www.createcapital.com/
Joined Jan 19, 2010
717 Blog Posts

Shit is Flying

As predictable as the establishment of this new trading range is (SPX 1040-1100), the move from peak to trough–and back up again–is sometimes astounding.

After plunging to SPX 1045, markets rallied back sharply at the close of last week. There have been plenty of conspiracy theories about The PPT (no, not ours. the folks who work on Maiden Lane) or some other government functionary buying futures and stuff. But that was not the case. There are legitimate buyers at obvious levels of support. There are also plenty of traders willing to take a risk at those levels of support. Of course, should support break on volume, then everything stops and reverses.

Dropping a quick 100 points in the SPX has served to change the tone of market participants, from wildly bullish to scared shitless and hoping for a break. Well, they’ve gotten one today. I’m not sure exactly why it has come today, but my guess is that it is a delayed reaction. This rally should have happened yesterday (Monday), but perhaps there were a few Super Bowl hung-over money manangers who missed work.

Banks are bouncing around, but not doing shit. It is the dollar plays that are going apeshit. While the metals themselves are bouncing, they remain in a downtrend. It is the related stocks that are seeing monster short covering action. Maybe someone “senses” that the dollar has gone as far as it will for now and is about to be “engineered” lower. That would certainly put a wicked bid under the market and the SPX 1040 bottom. Other than that, I couldn’t tell you why today’s rally is so dynamic to the upside. Maybe the media will invent something for our enlightenment.

Our positions are holding their own and there will be some new ones shortly.

ADDENDUM: Apparently, it is all about the Greece bailout. Can it be? Aren’t GOOG & APPL together bigger than the GDP of Greece. I kid…But no, really. Is that the excuse for this monster advance?

We are now half-way from the bottom of our range to the top. This is the make or break time. I expect a little retracment and traders to take some quickly-earned profits. Then a day of pause. Then another spike towards the SPX 1100 target…

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Position Review…

Just a quick position update.

Reco’d Century Aluminum Company [[CENX]] long at 12.50. Just doubled down near 10.50 and own at 11.50. Statying with it with a 9.50 stop and a 13.50 target.

Reco’d Goldman Sachs Group, Inc. [[GS]] long at 149. Rose to 159 and rode it back down to 150. Staying with it with a 147 stop.

Reco’d Kulicke and Soffa Industries Inc. [[KLIC]] below 5. Trading at 5.60. Buy on a test of 5.25-5.30. Stop 4.50, target 7.50.

Reco’d short eBay Inc. [[EBAY]] at 24. Maintaining position with a 26 stop and a 19 target.

Expect today to continue the tug of war as markets fight to define the lower parameters of its new trading range.  But a tradable bounce may develop before day’s end.

I hope you are enjoying and maybe getting some value out of the streaming video market updates. Have a safe and happy weekend and don’t slip on any bannana’s…

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Fear in the air…

I’ll be doing a video update at 2:00pm EST. You can see it on the IBC homepage, my blogpage, createcapital.com or on http://www.ustream.tv/channel/scott-bleier-biz-radio-simulcast-live

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Hit a home run–by accident…

Here I am, a newcomer just trying to keep up with the youngsters…

I say that I’m just looking to hit singles and doubles. Then I hit a home run. By accident.

Kulicke and Soffa Industries Inc. [[KLIC]] just reported a blowout number because they–like other semi-equipment stocks–are leveraged to any economic recovery.

Don’t get used to this kind of winship from me. It was an accident.

Please watch the simulcast of my radio show, if you can. I will actually answer a few questions, occasionally…

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