And the beat goes on! Bad economic news, market keeps chugging higher!
As I stated yesterday I thought we would go up today, probably tomorrow. Next week will be the litmus test. I think we get a pullback more than likely next week. So, enjoy this while it lasts. We sure are!
Today we had POT for about $10 from mid-day! Rocking! We tried to short GOOG late and got hammered a bit, but thats why you use stops! A $10 winner outweighs a $3 loser!
Friday if we are up throughout the day watch for a late day profit taking selloff into the close. Friday's been pretty consistent in terms of reversing the day or week late day. Traders like to square up. Right now the bias is clearly up. The market isn't rationale, in fact its downright insane sometimes, this being one of those times. But hey, why fight it? They seem intent on pushing GOOG to $600s, AAPL to $200s, RIMM (we own it!) to $140s maybe.
I'll tell ya when I'll be truly impressed with this move, if we go up and hold next week. I said we should see High of the Year and it looks like we want to try that mark. That's about 200ish points above. S & P is fast approaching the 1450 - 1460 level where I think it'll be very safe to start shorting again. The market ALWAYS overshoots to the upside, and always underestimates the downside action. That's the nature of the beast and I don't expect that to stop now. What inevitably happens with this kind of move is that people at some point realize that things aren't all rosey and then they look around and realize they are standing on a ledge and they have no support below, and its like "WHOOPS, bye byeeeeeee!"
Dollar is rallying, as called. Yes, we are going to have FOREX shortly, so stay tuned, the website is almost ready! When it is we'll send an alert and we'll be ready to rule the forex market, just like we rule the stock and options markets!
Next week's Option Seminar and then June's LIVE week seminar are filling up quickly, please email me - email@example.com if you are interested. The NJ seminar only has a limited amount of attendees and its MONEY BACK GUARANTEED!* so book it now!
Watch the commodities for a late day bounce if we do tank a bit. Oil looks ready to finally restest $100ish area. As long as the dollar rallies its headed straight there. Will it get there? Probably, but we'll see! In the end, I think investors are getting way ahead of themselves. This is a bubble forming and it's gonna pop again! And, folks, thats what makes a good trading market!
And, this market is indeed VERY good trading, very good indeed!
See ya on the other side,
Michael "Waxie" Parness