This here is the martini-hour thoughts newsletter summary sent to premium members. I am posting it today on the public blog here as a sample, but without the charts. Enjoy!
Wednesday, April 27
Just as we wrote in the morning line-up letter, the morning ended up fairly boring in terms of pure trading action. The most exciting action in the morning was the gap fill, after which traders turned their attention to the FOMC statement and the Bernanke press conference. The afternoon unleashed a ‘relief rally’ that put a bid under equities and commodities, slapped the dollar, and steepened the yield curve.
Our main take away from the press conference is that the Fed might feel overconfident of having inflation in control and judging by the action in the dollar index (lower) post press conference we might not be alone with this line of thought. Silver and gold you ask? Up up and away….which brings me to the portfolio;
The morning gap was profitable and we captured 3.5 points in the ES. After closing the long position LINE ahead of earnings tomorrow before the bell we also managed to take one more sliver of profits in silver and leaving the rest 1/3 of the short position on. While today’s jump in silver wasn’t the most fun for our silver p&l, the trade is still in the green and stops remain at 49.50. We also opened a long position in HLX (offshore drilling ain’t dead) as the stock pulled back near the $17.80 level after yesterday’s post earnings rally. Stops are at $16.95, T1 at $20 and a potential longer-term T2 near $25.
Other than that we left the portfolio unchanged but are looking to add longs in HNZ, APKT and others tomorrow on a little pullback…more on this in the morning line-up newsletter tomorrow.
The SPX now confirmed yesterday’s breakout above the February highs of $1344.
Have a great night
Serge B. Berger
The Steady Trader.com