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Here We Go Again
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Here We Go Again

by The MoleApril 29, 2010

I had a late start today as I had a lousy night. First thing I usually do when I wake up is to grab my iPhone to look at Mr. Zero. I can’t say that I was happy to see the spike up this morning but I frankly wasn’t surprised either.

The signals we’ve seen on the Zero Lite for the past two days were almost textbook and strongly pointed towards a snap back. Remember when I told you to take profits on your short term puts on Tuesday? Well, I hope you did 😉

Alright, we are now finding ourselves at an inflection point for the bears. I had warned about letting this opportunity slide and it seems we are but a few handles from Bear Armageddon.

More below for magic ring owners:

We are yet again at the 78.6% fib line counting from the first drop down. Since Tuesday’s dip is near that I’d call that line good enough for government work. A breach above technically does not disqualify the green scenario – only new highs would do that.

The Zero Lite is flat as a flounder right now – usually a precursor to a big move. Which way it’ll swing I don’t know yet. Let me dig around for more clues and I’ll chime in shortly.

2:25pm EDT: While we are waiting for this market to make up its mind I’m parsing for symbols.

Here’s a first one – CREE – part of the Nasdaq – semiconductor stuff. I see it near the end of a retracement. Chances are that support line will hold up. Easy to go long around 73 set a stop around 70. Careful with options – if you use them go more long term as ATR on this thing ranges between 2% – 4%. It makes a good delta hedge though I think.

I’d set an alert for 44 on DRI – yes, it broke that trend line but I have an inkling it’ll bounce at that 2.0 BB, maybe half a handle before. Stop slightly below, maybe 43. This thing is slow – so no options on this one. If you are crazy (and have margin) you can sell puts – I personally do not and would not recommend doing that unless you’re a pro.

I wish this HCBK was a bit further along as my momo indicators point towards a snap back. But I’ll have to be purist on this one – best to wait for a trendline touch. 13 sounds like a good place to take out a small long position.

INCY (drug pushers) looks like a nice long here. We are slightly below a more longer term support line but it’s worth the risk with a stop around 12.5. But earnings are coming up – be out before 5/5.

I hate to tell you this but JPM looks like a good long here. IF it breaches then try again at 40. However, wait for a retest – I personally hate to chase.

And now for something completely different – because I’m in a Metallica mood today:

That’s one sick video.

Cheers,

Mole

P.S.: Damn it – Bearmageddon would have been so much funnier.


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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