The Wrap 4/27/11

{+++}The market was stuck in park until The Bernanke spoke later in the day and basically told us that we will have rates near zero for an extended period. The dollar tumbled and a rapid short term free fall  for our peso is not out of the question. The silliness (for me anyway) was when Ben said we support a “strong dollar” policy. That was funny, almost as funny as when he told the Senate that we would avoid a recession back at the end of 2008.

Anyway, the market likes printing presses and took it as an all clear to buy stocks.  I took stops today on some short plays which included FAZ, XHB & TZA. REDF exploded again today and we have a 1/3 position left, this piece is up about 60% in about four trading days. I added SIFY as a long today as it has some exposure to the same places as REDF and the chart looks good with decent volume coming in. I am not suggesting it will do what REDF did but it has a similar chart as REDF before it popped. we’ll see.

LOCM started rumbling a bit today and I think we are just one volume thrust away from a potentially good move. TIBX had a nice reversal today and AKRX looks like is trying to get going. FCX also had a nice reversal in our favor as cheap money put the risk trade back on for now.

Unfortunately I will not be able to update the P&L for technical reasons tonight, but I will have it done for you guys no later than the market open tomorrow. hope you had a good day and enjoy your evening.

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