I don't know what direction this market wants to go this week--I'll be on the sidelines today on overnight--

A good rally into the close would give us some nice short set ups for tomorrows gap down again. Otherwise, nothing.

I'd like to see something pop-up Tuesday so I can short it--
BRCM--if that's up again Tuesday--I'll short that--

NEM huge red candle, might be the start of a 2 day falling knife--use a 42.6 stop loss

hi Z
what is your thought on FAZ and SPY
thank you

Moving stop losses higher on shorts--and Longs are risky--This might be sell in May and walk away--Type of new market trend--Where longs have to take profits quick, and shorts need to raise their stops in case they have a falling knife--

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thank you do you have potential targets?




________________________________

FAZ could go to 6 and then after that go even higher-
SPY --I don't do SPY--but if QQQQ gets back into the 35's I'd short SPY--
also if QQQQ breaks below its 200 day 33.8 or so---look out below!

RTH at 80.5 short that on overnight --but use a 80.7 stop loss-BB13 middle band short, might work

Winace on twitter--
He has to use 200 letters or less on his comments now--phew! That's good.
http://twitter.com/Winace

I can't find anything long or short to invest in--on overnight, yet
My GFI put is underwater--That might be a long--on overnight-
at the moment--I don't have any trading ideas intraday for overnight.--Maybe by the last 30 minutes I'll see something that makes sense.

Sell in MAY and walk away--I think I even nailed the day--MAY 11
That's what it's looking like--This sector rotation is really hard to trade

pre-market news
this morning's gap down did provide buyers an opportunity to rotate back into the tech sector and pick up names that failed to participate in last week's advance
http://www.nasdaq.com/aspx/market-summary.aspx

Darn ,I think MYGN would be doing better if the market wasn't dragging on it.

MYGN--I hope this does a DV--go up for 4 days--hey!, at least I can raise my stop loss to BE. (break even)

FXP up 7.4%...I have to close out 1/2 of the position on this big gap up

I bought MYGN Friday but I think I was early. I think it has another down day in it. Feels like a falling knife. Hope I am wrong.

Asia down
Oil down
Futures down

...they haven't been sticking. Lets see if today is different.

Dow futures down 47
http://www.bloomberg.com/markets/stocks/futures... Let's see if this dow down 47 holds thru the morning and into EOD--
Check for pre-market news

Visit YMYWDIRECT.COM Today!

http://ymywdirect.com/

Here's a nice little chart on UPS--I guest posted for TG--
http://www.tradinggoddess.com/2009/05/ups.html
I also posted this UPS chart in the member's only site--With a little more detail--The members will be able to enter this short at a much more accurate price-

Hey Zee, obviously I love the UPS short. Ready for IYT to get slammed.

It was your IYT chart that inspired me in the first place--

well, let's get it right Zee. I have really grown to respect your stuff. You've had some pretty nice calls against the grain. I'm watching you buddy.



________________________________

I'll probably stay in 70% cash this week--Financial stocks are to hard to figure.
QQQQ is in a strange position--Can't tell what IBM or INTC want to do--both of those are falling knife pullbacks--or maybe they are just falling knives--

Winace finally put up some charts
http://www.channellines.com/

BAC (C), (WFC), GMAC LLC (MS) were told they need to raise capital due to the results of the government's stress tests. (RF), (FITB),(KEY), (PNC) (STI) also were told to bolster their reserves.
By contrast, (JPM), . (GS), (AXP). (BBT), . (STT), . (MET), . (BK), (USB) (COF) don't need to raise additional capital.

FRI
Wells Fargo, of San Francisco, originally set out to raise $6 billion from public investors. It ended up selling $7.5 billion in shares and priced them at the top of its expected range, in a deal managed by JPMorgan Chase & Co. (JPM). The shares were priced at $22, an 11% discount to the stock's closing price Thursday.

Under normal market circumstances, secondary offerings usually price at a 2% to 3% discount.

http://money.cnn.com/news/newsfeeds/articles/dj...

I'd say if financial stocks do start trading like tech bubble stocks-and the market certainly seems bent on doing just that---then WFC could reach 36--25X p/e

WFC, as near as I can figure--WFC is only a $17 stock--

$HUI, I can't figure out why the HUI is up so high--double top, I can hardly find any HUI components that are double tops--HUI is priced too high compared to it's components.
http://finance.yahoo.com/q/cp?s=^HUI

Membership prices are set to rise 108% for new comers--
http://retracementlevels.zstock7.com/
just need Clickbank approval--takes 3 to 5 business days

I have posted this before I'll post it again!! If your not a member you need to join Zee's membership only site. I have been a member since December 2008 with NO regrets. By the way, this post is NOT a set-up, planned marketing/advertisement idea. This post is my personal testimony of how my trading has drastically changed with consistent winning trades since I joined Zee's membership site. I thought the least I can do is to show my gratitude for Zee's relentless work finding winning trades, sharing those trades with me and other members, and producing winning trades for me. I have never met Zee in person. I "know him" through this web site only. I stumbled upon Zee's web site through a goggle search I did for stock trading. Zee knows what he is doing. He has been trading for 9+ years. You will not regret joining his members only site.

Nergo, I like your new avatar better.

I've been answering all of my email--It took all afternoon---Whoa!

Have a great weekend!

http://ymywdirect.com/

Twitter test---I'm here at Disqus--Let's just see if these two are connected again!
Update--They're still connected--What I write here shows up there--

Geez...the recession must be over! Get long quick!

JPM 200 day weekly is 39--goodbye JPM

Should get a pullback last 20 minutes--Because of weekend selling

BCR finally took off--70 to 74--winner--good time to close it out--or raise the stops

GDX is an overnight short at 37.7

ADM is above its upper bb band--27--possible overnight short--use a 28 stop loss

XOM overnight chart says XOM is either a higher high on Mon--which would make it a short sell--Mon
Or it's going to be down on Monday

KOL accumulating JN 27 puts 4.50

I have a good buy signal on DOG for an overnight--use a 65 stop loss
DOG is a DOG

GFI JUNE 11 puts filled 0.58--why not--I'll add more at 0.30--looking for 1.40 exit

If my semi-conductors list doesn't get going higher on MON--They will be falling knives--That's what it's starting to look like to me--

VIX on overnight chart has to move at least 3% in either direction On Monday---Right now the chart slightly favors an up VIX on Mon

$13.67 is the 200 day on the XLF. The XLF has not reached its 200 day since October 2007. XLF is up over 5% today. Nibbling on SKF here. I traded it yesterday and didn't hold it overnight. I'm probably going to hold this for a while unless we take out yesterday highs in the XLF

Any opinion on SRS. Shake out today or what? Thank you for your posts

anything requiring a loan (IYR) sector should continue to underform the market over the long run. Those are my thoughts for today. Probably not helpful for a trade at the moment.

Zee, What do you think about TWM? Today highs need to reverse soon. IWM is at 50.72. What is IWMs top before a reverse is in order?

IWM 200 day is 52--or 2% higher--
TWM 47 looks easy to get to next 5 days--correct entry could be today--or 44 or 43.5
It's a winning trade at 45--might do a BKC--tie up funds--
LONG LONG time frame TWM 55 target or higher

AMGN trying to go long at 46.8--46.5 looked like a gift
MYGN filled at 31--solid 32.5 and then higher target 2 to 3 days out

I'm thinking of putting a C/FAZ pair trade on in my IRA (both long positions since FAZ is a leveraged short fund). Figure one or the other will double or more.

I wonder if SKF or FAZ is the better choice for the trade.

C 200 day is $9--might take a year

OK, did it cost basis of FAZ - $4.78, C - $4.09

We'll see how this goes!

That's fine - I've got a year. I do better with the IRA when it's just set it and forget it trades.

Semi-conductor stocks look bad--INTC,NSM,TXN etc

PSA is headed to lower-price channel-65 high-- lower support ?

Pre-market news
March wholesale inventories declined 1.6%
Nonfarm payrolls fell by 539,000, beating the consensus estimate of -600,000.

Any body buying FAZ here @ 5.30 level ??

Z ... What is your take on FAZ ?? is it better to wait ??

I'm still looking at FAZ--at a 4.7-- 4.9 entry--if that's wrong ( too high)--I'm pretty sure can at least get your money back---

CHINA looks a little overbought. FXP hugging that lower bollinger and FXI needs to fill that gap around $32. I'm in FXP today. I have a $19.50 target.

Bot FXP at 15.40. (I pulled the limit order at 15.6. see1 below ... had to run an errand & I deleted it)

i never was very good at trading FXP...I'm going to wait and see what happens next week with it.

I am going to follow you. Limit order at 15.61 ... See if it gets hit.

DOW futures up 56--midnight report---
Jobs report could be a negative on FRI--probably not--
frankfurt overnight --advance lead decline 4 to 1
BAC and C up 12%
If the market can get high enough on FRI--there might be some stocks to short again--Like KOL--I'd sure like another try at that one--Seeing how I was stopped out at the very top yesterday--Used a 1% stop--dumb

Looked like rotation into healthcare to me today, Z, for what it's worth. MYGN is probably a good pick. Here's what I'm looking at to judge about rotation into healthcare: http://finviz.com/map.ashx?t=sec

Kemal_1 If you count from today's top, there is an impulsive A wave, then a b 3 leg consolidation followed by another impulsive leg down (c).

That's how I am counting.

Should be about finished. I sold all short positions.

--

traderbean
I dont like the price action in ENER, long term or not, I am taking a small loss here @ 15.85..

I want to give "Props" to trader TenYear, who saw short term resistance at $21... THAT was top from this week...

Kemal_1
So far it looks like a reversal day. However, for a follow through into tomorrow, SPX should close near the low. Looking at the NDX, I think it will not happen because it is already oversold.