The entire universe of “Tiger Cub’s and Seeds” (offshoot funds of Julian Robertson) are sitting on huge long positions in the following high beta stocks:
GOOG, RIMM, QCOM, BIDU, AAPL
I doubt there is intentional coercion, but there is certainly dialogue. What are the short-term implications for fast money traders? These stocks will have support on significant […]
Friday’s rally confirmed by volume.
Biotech Index continues to hover near all-time highs, testing October 2007 levels. Red flag is Accum. Swing Index, which has not confirmed high (except Monthly). A broad market rally focused on Tech, catalyst being USD, will rotate $$ out of defensive stocks (e.g. healthcare). Wait/watch for pullback in this sector.
SLM: Sallie’s showing great bid support after a 4-point run from where the entry was. It’s probably tempting to sell for $19 something you just bought for $15 about ten days ago. I know, “compound it out and that’s a fortune”. The problem is that it hasn’t been a year and this is a volatile […]
I’ve been slammed with emails from people wondering why no global macro commentary on the recent action. My response has been: “It’s far too late for commentary now. There’s nothing to do or change based on the market operation that was put in place when everyone else was screaming bloody murder”. In other words, as […]
Financial stocks in the stock market presenting major buying opportunities but risk is high so trading sizes should be reduced significantly and long term positions built up over time. Exploit the volatility.
There’s absolutely no way to predict how the market is going to behave in the near term. This is where the “chaos” meter spikes off the charts. Pure random noise. But one can, if one so chooses, to react based on certain “tactical” guidelines. I would prefer to see some retracement early in the trading day, a base to develop over several hours, and then a continuation on Thursday and Friday for another 10% to 15% from here. These short term bear market rallies are hands down the best market environments to trade the bull side. The problem is that it would also require sitting on one’s hands for several days, weeks even, keeping the powder dry. Since most full time traders can’t sit out from the market for sustained periods, there is a tendency to give gains back.
The massive gap to the upside is a bitter-sweet move for those with long-term investment horizons around the financial stocks that have been mentioned here in the past two weeks. Bitter-sweet because although it should show good profits for long positions, it also places a big, nasty gap right below current prices. And being that […]
A great way to take advantage of the excess pessimism in the REIT sector is to buy URE, another geared ETF that holds a portfolio of very strong REITS. Remember, this is also a 2X ETF so it will move twice the regular Real Estate index.
