Morning Thoughts June 8
most fireworks in AM (China rate cut, Bernanke’s speech, BoE call, etc) – Volumes back to norm (down -4.5% vs. previous day and -3% vs 20day). Treasury stable (10y rates 1.65%) – Defensives better – fresh-shorts laid out (Energy and Mining specifically). BUT we started to fade after 1) Bernanke said “ready to act” but […]
Lululemon Ready For Follow-Through Buying
Yogawear purveyor Lululemon (LULU) has been quite the growth story in recent years and at the same time a stock volatile enough to satisfy every trader’s cravings. Since 2011 the stock is up well over 100% and in 2012 alone it is higher by roughly 50%, outperforming most in its industry. Yesterday, Thursday December 6th, […]
Morning Thoughts September 7
Good Morning While yesterday was a solid day for equities all around it is Intel (INTC) that still concerns me…and of course this morning it cut third quarter sales forecast. The stock remains completely diverging from major averages. The rest of equities look good, the Russell 2000 breaking out of a consolidation phase, although not […]
Bucket 2 Long Idea
Global Cash Access Holdings (GCA) on a close above $7.85
Morning Thoughts August 7
A very low volume session yesterday is thus far leading to further gains in the overnight session. Broader U.S. and European equity markets still look to re-test recent highs. Especially the S&P 500 looks to be able to recapture 1415 and likely 1420 before heading into bigger resistance. The chart of Apple to no surprise […]
Morning Thoughts June 7
Volumes good yesterday (+17% DoD and 5% above 10d) – closed at absolute highs – SPX ripped thru 1,300 and 200d – VWAP never tested on downside – no short-covering evident – BIG asset reallocation from UST to equities – RISK back on (BETA +3.8%) – Homebuilders on a tear (above 100d) – TRAN back […]
Two Stocks, Same Setup (NFLX, BIG)
Now that Tuesday’s trade idea in Yelp Inc (YELP) is moving nicely in the direction discussed, let’s look at two new high probability trade setups. Both Netflix (NFLX) and Big Lots (BIG) saw significant jumps in their stock prices on Tuesday December 4th coupled with equally significant jumps in volume. Both rallies came on company-specific […]
Closed Bucket 2 Position
We closed the Bucket 2 short position in SPY Friday afternoon. A classic bear trap developed post Draghi comments on Thursday that left the charts with a bullish tone at the end of the week. Outside days and bullish reversals are all over the charts. More on this in detail in the morning thoughts on […]
Morning Thoughts August 6
The big upside reversal Thursday afternoon with follow-through on Friday was significant. We closed our SPY short position Friday afternoon and are now positioned a little long SPY. Next upside target on S&P 500 for us is 1405 and we see a good chance the index can hit 1420 in coming days to maybe 2 […]
Quick afternoon hit
So far today it’s just been a straight shot higher into the 1310 resistance area on the S&P 500. From a daily chart perspective yes this looks nice but headline risk remains large and with chairman Bernanke having a testimony tomorrow I am keeping my cash pile at 96% and looking to spend more time […]