Random Thoughts

How did Steve make 5k plus trading MGM today? The guy is an animal. He never took lunch. I swear he would still be trading it if he wasn’t in an interview presently.

MGM turned at 7.25 this AM. It was in an intraday downtrend. 7.25 was 25c from its secondary price of 7. And about 35c lower than GMan thought it was headed. GMan was a bull all AM with MGM and finally caught its upmove. Good stuff by GMan hanging in there and grinding it out. Traded up towards 8 and above. 7.75 is our new level. It could not trade below 7.75 into the Close.

Great call by Dan Fitzpatrick (Stockmarket Mentor) with the POT 100 call. Dan has been on with JToma a bunch of times and gives excellent color on the technicals for this market. He is someone we follow closely.

JToma, our Senior Trader, will be in the studio for CNBC’s Fast Money Halftime Report next Thursday with Melissa Lee. Some more must see TV. We are making him rip through a hundred charts a day till then. Who knows what he will be asked? He should be awesome.

Starting to see the value in this whole twittering thing. SMB was able to communicate we were trading on the short side if SPY held below 90 before the Open yesterday. And SMB is becoming a fan of Stocktwits.

Steve and I are heading out West tomorrow to visit a prop firm. We were invited to give a seminar for this prop firm’s traders. Great NBA coaches share plays and techniques. Great coaches are notorious for sitting in on Coach K’s practices. Looking forward to learning from some other excellent traders and perhaps sharing some ideas for them to improve. And maybe I will get some golf in as well.

Just came from the doctor. My vitamin D count is so low the Dr. asked if I ever go outside (the sun helps you produce vitamin D). I told him I would get outside when the market stopped offering so many opportunities.

Apparently a lack of vitamin D is an epidemic in the Northeast.

Heading home now to catch the Yanks game. Looking for them to take the series with Toronto and get back on track.

We will provide some updates from the road.

Best of luck with your trading. Don’t forget to follow us on twitter.

12 Comments on “Random Thoughts”

  1. I’m long srs, sds, skf, ung, fdo, xbi tomorrow. PRU and the insurers getting money is not a good thing at this point, it should be worrisome to the market. Retail sales and jobless claims being worse than expected unfortunately smacks recovery bulls in the face. No volume today because the half of the market that wanted to sell were in denial and the other half is just so late to the party they’ll pay anything to get in. Industrial production and regional manufacturing indices should prove to be dissapointing. Are inventories still emptying or refilling at this point? Oil is probably overbought, and natural gas is so cheap relative to oil that it might do well regardless of the rest of the market. FDO is at $30.60, sitting right above support at $30.32, $30.36 and $30.59, those levels were established after an 8% gap open leading to a 12% gain. So, it’s a pretty easy to get out if it breaks below those levels with any conviction. The still bad, Wal-MArt economy is good for family dollar and money has begun, and should continue moving into defensive sectors like the packaged foods and discount retailers. FDO had a weak April and May because Fortress and Ruby Tuesday were tripling. Plus fake earnings from banks had the banking sector rallying, but things just don’t look so great. XBI because there was some huge biotech releases tonight that who knows, could reveal some fun cures and rally what has been a weak biotech sector, like ung I think it could perform in a higher or lower market. And short real estate. Housing sales MAY pick up, but its already May! If they do pick up, I’ve got a feeling they are at big time discounts, driving prices down further. Kind of a catch-22, sales and prices will probably move inversely if either rises, while on the other hand they could drop at the same time. I’m not ecstatic about being short the banks because you just don’t if investors still want to get a hard-on about the government giving companies more billions. Can you imagine the influence the government will impose on the insurance industry! They probably wouldn’t have taken the money unless they really needed it, which would be really bad and sounds about right, or they are so dumb that they can’t pass on what is obviously not free money, but they plan on doing some really risky things with it whereby it would have been worth it. That sounds about right as well. In the first case I am certainly short the insuarance companies and banks. PRU is a $40 stock that is getting a government bailout, the banks were headed towards 0 when they got their money. PRU bounced off its 200-DMA on low volume. It looks like it should break down to around its 50-DMA. It’s 38% and 50% retracements around at $33 and $28.80, the stock closed at #39.97. Unless PRU gaps way open and rallies and its clear I’m wrong and things are gravy again, I’d say PRU should turn into a nice short trade.

  2. I’m long srs, sds, skf, ung, fdo, xbi tomorrow. PRU and the insurers getting money is not a good thing at this point, it should be worrisome to the market. Retail sales and jobless claims being worse than expected unfortunately smacks recovery bulls in the face. No volume today because the half of the market that wanted to sell were in denial and the other half is just so late to the party they’ll pay anything to get in. Industrial production and regional manufacturing indices should prove to be dissapointing. Are inventories still emptying or refilling at this point? Oil is probably overbought, and natural gas is so cheap relative to oil that it might do well regardless of the rest of the market. FDO is at $30.60, sitting right above support at $30.32, $30.36 and $30.59, those levels were established after an 8% gap open leading to a 12% gain. So, it’s a pretty easy to get out if it breaks below those levels with any conviction. The still bad, Wal-MArt economy is good for family dollar and money has begun, and should continue moving into defensive sectors like the packaged foods and discount retailers. FDO had a weak April and May because Fortress and Ruby Tuesday were tripling. Plus fake earnings from banks had the banking sector rallying, but things just don’t look so great. XBI because there was some huge biotech releases tonight that who knows, could reveal some fun cures and rally what has been a weak biotech sector, like ung I think it could perform in a higher or lower market. And short real estate. Housing sales MAY pick up, but its already May! If they do pick up, I’ve got a feeling they are at big time discounts, driving prices down further. Kind of a catch-22, sales and prices will probably move inversely if either rises, while on the other hand they could drop at the same time. I’m not ecstatic about being short the banks because you just don’t if investors still want to get a hard-on about the government giving companies more billions. Can you imagine the influence the government will impose on the insurance industry! They probably wouldn’t have taken the money unless they really needed it, which would be really bad and sounds about right, or they are so dumb that they can’t pass on what is obviously not free money, but they plan on doing some really risky things with it whereby it would have been worth it. That sounds about right as well. In the first case I am certainly short the insuarance companies and banks. PRU is a $40 stock that is getting a government bailout, the banks were headed towards 0 when they got their money. PRU bounced off its 200-DMA on low volume. It looks like it should break down to around its 50-DMA. It’s 38% and 50% retracements around at $33 and $28.80, the stock closed at #39.97. Unless PRU gaps way open and rallies and its clear I’m wrong and things are gravy again, I’d say PRU should turn into a nice short trade.

  3. vitaman D problems here as well! good call..

    weekend homework: copule hours of trading tape + Norweigian cod oil

  4. vitaman D problems here as well! good call..

    weekend homework: copule hours of trading tape + Norweigian cod oil

  5. JB,

    My doctor has me on a vitamin D replenishment program. This entails an inordinate amount of vitamin D. If there were drug testing in day trading I might not pass. I would be suspended for unusually high levels of artificial vitamin D- like Manny and ARod.

    Bella

  6. JB,

    My doctor has me on a vitamin D replenishment program. This entails an inordinate amount of vitamin D. If there were drug testing in day trading I might not pass. I would be suspended for unusually high levels of artificial vitamin D- like Manny and ARod.

    Bella

  7. Thanks for coming to Austin, TX for the trading seminar.

    I also like the “Best Morning Idea” on twitter.

    Thanks again for all your help.

    Jeff
    Kershner Trading Group

  8. Thanks for coming to Austin, TX for the trading seminar.

    I also like the “Best Morning Idea” on twitter.

    Thanks again for all your help.

    Jeff
    Kershner Trading Group

Leave a Reply