Wow, what a quarter, market started the year with a BANG as the January Effect rocked...then we tanked 10% and everyone figured it was the end of the line. The Bears were out in full force proclaiming the death of the market...but they were wrong, at least temporarily. Then we rallied hard to where we are now, stalled right near the highs of the last year+ at the end of the first quarter.
Window dressing proved very profitable and our traders seemed to enjoy a ton of goodies and goodie bags. Today I got out of most everything I owned as I am now neutral on the market. I think good shot we get a small drawdown, but baring bad news I doubt it goes very far, 1150 is a support line to watch on the S & P. If we did bust below that and hold below it we may indeed head below 1100 again.
The market is kinda in no man's land here. There's a ton of reasons we've seen our peak for the time being, including what I just laid out in the preceding paragraph, but we still look to me that at some point not so far away we want to taste 1200 S & P, and 11,000 DOW. Its not often that we'd get this close only to fail and not hit those magic marks. Since 11,000 should be stiff resistence at least initially, though, its hard to get very bullish either.
So, for now, until proven otherwise, we're range bound and I plan on staying pretty tight here. There are some earnings runners I like and I may do a class on that, so stay tuned! I'm hoping that we get a pull back which would set that up nicely, though, so we'll see soon enough.
RIMM reported after the close and the #s weren't good enough to drive the stock higher after hours, though I will say the stock didn't sell off enough to scare me away from saying that the dip is probably buyable and I wouldn't be surprised to see RIMM go green TODAY (Thursday) or next week be higher then where it is at the open tomorrow. $65 area should be a very strong base of support and it bounced near there after hours, so thats a crucial line in the proverbial sand (I think it hit $66actually).
Tough times, a lot of people struggling, and I feel for them. It doesn't provide any solice, but I think most everyone I know is struggling in some form or another. I certainly do at times, its part of the human condition.
I read an article about trading the other day that basically condemned traders to losing money. It's really sad and horrid how our profession is a punching bag, when I believe so strongly that there are ways to profit huge in this market (or any) and with the right game plan and the right discipline you can rock and RULE.
In my Marketcast classes we're going over just that, each trader setting up their own personal "trading plan" and hopefully sticking to it. We're offering a FREE 2-week trial to the service, which is normally around $500 a month. I suggest you sign up, just email - email@example.com and she'll hook you right up. I love doing it, its twice a week and I think people are digging it as well.
I'm beat, hope you all caught my new radio show, be sure to dial in to speak to me every Tuesday from 1 to 2 pm at - www.chataboutit.com/about/the-trader-speaks
Dial in toll free at - 877-242-8212
In the meantime, let's continue to rock and roll, but be cautious cause right now its a toss up I think and I like better odds then that...
Michael "Waxie" Parness
*Free 2-week trial at our premier CHAT ROOM and EVERYTHING off at; www.trendfund.com
Don't be shy, and don't regret - RULE!