Looking over MJTT's T.L., I noticed three things:
- The lay-offs kicked the market in the face. Initial Claims beat the market like a drum from a projected 541,000 to the actual number of 589,000. Those are lost jobs folks!!! This can't continue, and Obama is doing exactly what I thought he would do in order to solve the problem; sit in a corner in the fetal position while sucking his thumb, go to unproductive "Economic Conferences," and pray that the Congress and the Senate pass his "job-saving/creating" stimulus plan. Good luck with that, and watch the dollar go through an enormous deflationary period due to absurd government spending! I can't wait to tack on MORE money to our national debt!
- Based on the current financial situation we have been so sanctimoniously blessed with, I have come to the conclusion that the financial push we have been experiencing since Tuesday has been earnings driven and that it will not continue into tomorrow due to the slack on earnings from Microsoft and the amount of lay-offs from the tech sector. As AAPL drove the market higher Wednesday and the mood was optimistic tech wise, we saw the market take a turn for the worst today (even though it wasn't down much) as the tech sector was evidently weakened by bad news. Keep this in mind when reading number three;
- Number Three... My lucky number, which gives me new-found faith on my decision to buy FAZ @ $62.75 today near the close (but trust me, my technical and fundamental reasons as to why I bought FAZ are much better than my faith-based ones). The ridiculous buy volume on both JPM and GS will end tomorrow, no doubt. With this in mind, FCX is at a pretty solid support, and UYM is looking ready to get out of its wedge @ $12.41. Closing with a spinning top candle, however, does not convince me one bit and doesn't give me enough of a decisive measure to buy into the UYM or FCX. It's worth a look, however, as the pick-up in gold will spring-board due to the financial institutions' week's end demise occuring tomorrow.
The iETFs are looking mighty tradeable again. Although looks can be deceiving for some of them, keep your eye mainly on SRS and FAZ for tomorrow. I have set up charts for both of them below:
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SRS 30-Day
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FAZ 20-Day
The MJTT watchlist for tomorrow is as follows (with charts for each below): FSLR, DXO, UYM, GT, FCX, GAS
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FSLR 60-Day
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GAS 30-Day
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DXO 30-Day
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GT 20-Day
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UYM 30-Day
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FCX 30-Day
Position Update:
- FAZ @ $62.75 [20.73%] w/ Stop @ $60.50
- Cash [79.27%]
This concludes my lesson on how to not get shafted tomorrow like I did on Tuesday. Hedge your bets, place some tight stops, don't go all-in, and watch your back! Until tomorrow my friends...
Keep Tradin'
ZM
Good post, I am into FAZ around 65 and 72... It seems like these financials are truly worthless... I wouldn't be surprised to see FAZ around 200 in the next couple of months. Only problem is that FAZ is so volatile you gotta be prepared to loose money before making it...
I would suggest reading a good post about placing stops on doubleETFs. Basically using 5, or 8% stops on double ETFs is not as profitable as using larger stops... see link http://tinyurl.com/c6d9vh
Oil stocks...
DXO is the one I like most from your list
others... FCX is set up to do well too with the Gold rising. Looking at FCX technicals it's not as clear cut double bottom as say $WTIC and some oil stocks.
Look for gold to go a lot higher this year!