Trading Ideas for Thur/Fri
For Thursday:
JPM- Top name. Target size is 3 boats. Work hard for it. Confirmed/Qualified 12 count.
Assume all insiders have been massive buyers over prior several weeks at unheard of prices. This is where crowd psychology starts to shift, and the beginning of the momentum shift is always the toughest AND most profitable. FOCUS…FOCUS…FOCUS…
MS- #2 in sector. Amazing accumulation all day long.
If SKF < $149 then 134, 127, 123.50. If enough stock not in inventory, look at FAZ short (non-threshold stock)
Homebuilders at lower end of this base. I see this group as a leader over next several quarters. Perfect pscyhology trade: CTX, LEN
OIH/ERX/USO/UNG- Confirmed 9 count with nice looking stick. Entire energy complex poised to readjust for some recovery of demand. Spread between WTI and Brent closing, indicating a market in less distress. Will there be too large of a gap? Note, nat.gas stocks deeply depressed and heavily shorted (CHK, CNX,
FAS/BGU- Wow, this is a first. A confirmed AND qualified 9 count reversal in a triple LONG ETF. Load the boat.
UYG- Red flag on Dow Jones US Fin’l Index. Today was an inside day to Tuesday’s massacre on huge volume. Action should be in commodity and infrastructure stocks; use financials to balance Long/Short book.
BAC- 10 count, unqualified but VERY close. Anticipate qualification if possible.
CME- What a powerful rally all day. Very impressive and shows enormous velocity. Much energy still remains in this rally. Manage Thurs. gap and ride back to $225.
CRM/VMW- Expect big upside gap, but certainly confirmed pivot. Would like to catch some of this move to $35/$26.
JBL- Nice pivot. Back to $8. Also: MRVL, MBI
WYNN- Unqualified 9 count. Watch.
CAT- This could be final pivot I was waiting for. This is the “infrastructure” general.
X- Perfect base built on $30. To $38 first stop.
AKS- Excellent oppty. to pick up under $10. Last call before this ship sails…
ACI- Similar base at $16. Good for pivot reversal to $20. Huge positive divergence in Money Flow during last break to new lows in November.
AGU- Same set-up as ACI.
Look, all correlations are still at 1, so why spread out across so many names when we can just take a massive position in one of these? See if there’s any edge gained from building portfolio versus acute concentration in a few names.
Airlines downgraded on a day like this? What does this remind you of? Back in the days when big boys would downgrade in the face of a rally as large institutional clients have unfinished accumulations in the pipeline at specific price zones. This is cash money to the firms, they need these orders filled or it will decimate their month-end post-trade reporting. Most of the pain taken by American anyway. Others sold off from arbitrage traders.
AAI- Buy this already and stop looking at it. This is silly. Get long and strong.
Got to watch solars. This is their line in the sand where this rally should take off. Positive wires on solar and Obama today and should likely continue.
