Friday, October 31, 2008

Gap and Go on trending friday 952/9155/1319.5 10 am print is the definition

thought there was a trading band with 948.5 and 956.5 hourly prints on the way down yesterday

and so far the S&P is stuck right there

I reminded myself that the blast off rally from 855 to 940 has basically been kept intact

so either a breakout or a fakeout move followed by a trending move is the expected pattern

the problem right now is that i am not sure if we spike down then rally sideways to higher towards 1000 or 1065 for a few more weeks; or whether they spike it up today all the way to 1000? or more and then crash it when i am at the beach on monday, tuesday(especially if the exit polls show an obama landslide)

for now trying to just stay short the DOW future from yesterday's closing high hour at 9226 which was a Cash hourly print a few days ago. if wave 3 of 5 down of A is next, then i want to get real short

on the stock front AFAM and AVAV featured in IBD
sold AFAM on the gap up (and $2 points from the high) to book a profit

sold EBS yesterday and it is still higher

ASEI trying to chug forward ahead of the november earnings report (think i do not want to own it into the election anyways)

selling ISYS above $24 for a nice profit too

the IBD rankings have EBS, AFAM and ISYS the top three and I owned them all in advance of that ranking . i will buy them back if the general market indices want to go higher since the IBD community can be a self fulfilling prophecy in the short run

FLIR is a new position that needs to keep clearing $31

thinking sell gold stocks since no real traction

however the natural resources stocks that were bought include IPI IPHS and SQM and seem to be relatively strong into month end

the first two are phosphate and way oversold and the other is Brazilian oversold miner(?)

http://stockcharts.com/charts/candleglance.php?sqm,UNG,Avav,kgc,ipi,ISYS,FLIR,EBS,Afam,iphs|C


by the way the 30 year bond is now 10 full points below the high it made last month wow

the yield curve is steepening as the markets decide not to lend 30 year money at 4% anymore
(of course i always assume that it is Bill Gross at PIMCO pulling the strings in the 30yr. I imagine he shorted the hell out of them at 3.75% and is a big buyer at 5%)

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