Good morning !
As predicted yesterday [1], the market got a nice gap up this morning. But give up the gap very soon. The European stock market runs up well but finally jumps down very steep. formed an intra day reversal. Will the US market go the other way ? I mean \/ ? Let's watch and learn.
I already warned in yesterday's comments [2] that today the Bulls might fight back, so be aware of it and keep alert !
Oil has tried to break out 62. Gold GLD has gained $8 and stands above 959 now. Euro continues going up and now is above 1.40 . I really starts to worry about the Dollar's future, which is bad for all of us living in US and are holding dollars.
Yesterday, I mentioned the divergence between the US stock market and the Euro. So far, it seems the US stock market will follow the Euro. Crossing my fingers again
QID holds 38 well now. But I think now the important level of QID is 39 now. Only breaking out 39 could push QID higher. Otherwise, a pull back and consolidation is very necessary.
Some notable news:
1. Florida's BankUnited failed
So the financial crisis may continue, we should keep an eye on FAZ. I am hoping it can drop to $2 level.
2. GM may not go bankruptcy due to the restructuring
But GM's stock price dropped hard this morning. Yesterday I mentioned double check if GM can hold above $1 well during the pull back, if so, I plan to buy some around $1.20 to test some water.
Today's market close prediction has been updated [3].
[1] yesterday prediction
[2]Bulls might fight back
[3] close updated
Have a good trading day !
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Thanks a lot. I think it is a up day for sure.
ReplyDeleteGM is up again now.
ReplyDeleteAre you crazy ? if FAZ goes down to $2, I will be almost broken ....
ReplyDeleteFrom the chart, FAZ retests 4.4 is very expectable. If $4 can not hold it, it may drop to $2 level... Sorry for you FAZ holders, that's just the chart reading...
ReplyDeleteTiger
I'm a FAZ bagholder too.. Charts mean nothing on FAS / FAZ imo.. the 3x's have way too much movement.. better to look at RIFIN and follow some reits.. I'll let it go to 0 before I sell haha.
ReplyDeleteMy only trade for today SO far.. was shorting PSUN pre-market at 4.40 (it was sitting at its resistance point all pre-market. Shorted it.. then i swear 2 minutes later it started tanking.. I covered at 3.85 .. was about a 20 minute change over..
I was wondering why it was sitting at its resistence on an earning report I didn't think was very good.
I'm not sure if today will be an up day .. or down day.. really hard to play going into a 3-day with low volume..
Ben,
ReplyDeleteNice trade on PSUN. PSUN may drop to 3.
Sorry for your FAZ. But I think the average of $6 cost on FAZ should be fine. FAZ may hit $10 again sometime later this year, or next year. I am still a little bearish biased on the financial sector so far.
Enjoy!
Tiger
Tiger.. Yeah.. I try not to be worried about it.. and just keep selling / buying calls... When it has the big movements call prices change big.. and good money to be made.
ReplyDeleteToo much Gov in the financials.. so not adding more to avg down.. just playing calls to try to break even.. a run to 10 would make me smile.
I'm looking at DUG right now.
Decided to jump in on DUG filled at 18.95 .. will cover at 21..
ReplyDeleteBen,
ReplyDeleteif you want to hold faz, play with the option such as selling calls and collect the premium may be a good strategy and will surely average down your cost.
I think DUG might break down 17. But it should be a good play since I also think the Oil can not stand above 60 for too long. Let us know your target and plan on DUG.
Tiger
Sorry, Ben, I didn't see your DUG post. Nice entry point. But I see some resistance for DUG around 19.80. Only breaking out 19.8 can make DUG run, based on the chart. Hope you make some nice money again.
ReplyDeleteTiger
Kindly reminder to all, today the market Close early at 2:00 ET
ReplyDeleteBen, nice trade on DUG. 19.14 now. looks so far so good.
ReplyDeletePay attention to GA, ER soon.
Tiger