Thursday, February 18, 2010
Lethal Combination
We are very overbought, hit resistance at the 50 day moving average, got a discount rate hike. I think this weighs on the futures overnight and we will probably open around 1090. Euro is getting pummelled as I write, along with all the other currencies. This is a huge game changer psychologically. Sure the discount rate doesn't mean much, but it tells the market the Fed is starting its exit strategy sooner than everyone expected. I expect all risk assets to be pressured tonight, commodities, stocks, etc.
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11 comments:
I can't believe the nonsense going on in this market. We rise big for no apparent reason. Then we get pummeled in the after-hours. I hope we do gap down big in the morning.
A gap lower Friday should be bought. This market is going higher.
Be careful on the short side. Don't get short the bottom. Like I said all the moves are overnight.
Hey Anon hope you kept EDZ
Owl, can you give an estimate how far low we'll go during market hours on Friday? -Petsamo
1092.5, 1090, and 1088.5 are the resistance points on the downside. I don't think we'll go below 1088.
Dawg, I still have EDZ. I thought to break the pattern of selling at a loss and will hold out for now. Thanks.
Anon, I sold EDZ today @ 5.46.
OL DAWG
Dawn,thanks for the update and i sold it at 5.45. I bought MIPI after seeing your buy.
Dude Anon, you should have followed the RNN trade.
I"m not liking the MIPI trade too much. I'm actually thinking of exiting at anywhere around 1.55.
My basis is 1.53. If it breaks the 1.50 level clearly to the downside this can easily go to 1.30 to 1.40 (basically where it all began).
My hope is that it can reach 1.60 today. I"m out for sure if that happens.
The problem with this stock was it went up yesterday on a short squeeze I think. There is no news on this thing, unless it's insider buying yesterday, but I we don't know that, hence short squeeze/dead cat bounce yesterday.
Thanks Dawg. I will look for exit too on MIPI. I put a stop loss at 1.49. I want to put a selling limit at 1.60 but Fidelity won't let me enter that. Maybe I need to use tradeking instead.
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