Ya know, its a very good thing that I'm not a technical trader. The only thing I know about head and shoulders is that it's a shampoo! Da Dum Dum. Oy vey.
Ok, so that was bad, but I have to tell ya, this is why TRENDS RULE THE MARKET, and WE RULE TRENDS!
We are getting a CLASSIC earnings run, and we are taking advantage of it nicely here! BAC, GE, PRU, JPM, GOOG, MS, all stocks and options we've owned here into this and out of it and the ka-chingos are rather frothy! VEry nice indeed!
It's always amazing to me. I had a couple of bad weeks, admittedly, but I never doubt my abilities. Someone wrote me today saying "I thought maybe you had lost your touch". Maybe that'll happen one day, but the cool thing is, it hasn't yet and even if so, hey, I still have taste and smell to rely on! You didn't know Henny Youngman was still alive, I know.
OK, so enough with the one liners. Thing is, this market, if you are patient and pick your spots is a GREAT trading market. We were just treading water and its easy to overtrade when that happens and its a very tough market to trade then. But, out of the calm usually comes the storm and that's what we've gotten. HUGE moves two out of three days this week and I've said it again and again that I just didn't see how the market was going to die here through earnings without some really bad news. The market is still heavily shorted and any good news is going to be met with extreme short covering.
Also remember, this is options expiration week and moves tend to be exaggerated and pin action is in play. Look at stuff here and tomorrow for clues as to which way we will lean, and which way stocks will go individually. We should get some nice setups for short term trades.
TOmorrow GOOG is on tap after the close. Before the open is JPM which will set the tone for financials. Remember, they are overbought here, so a gap up is not something I would chase, stick with what ya got and ride 'em Trend Traders!
CIT getting a bailout, when does it end? Soon we may have more companies bailed out then companies that are in business!
Watch CME here, if it squeezes it may try for $300s in a jiff. Stock bounced today but on a pullback would be an even better entry on no news. We'll see soon enough!