So far $WLT is doing well. The Bernanke has rates right where he wants them and coal and energy are popping. Takeover chatter also seems to constantly surround the name and the chart looks terrific. As you can see in the chart below, the stock broke out of a downtrend (white line) on January 11 on big volume. That is what you want to see in a potential “bottom”, as long as volume validates it. In this case it did and the stock just continued higher. The 200 day moving average is up around 87 bucks. The stock may need a rest though.

WLT

$MCP developed a big head and shoulder pattern in 2011. That is a weekly chart below. It broke the neckline of that pattern on March 23 and since then all it has really done is develop a few bear flags. Actually it’s currently on its third flag since breaking the neckline. I see lower prices by year end, but there is still much time to make me look foolish on both. Good trading.

MCP

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$FIO – Subscribers shorted at 23.80 with a 24 stop, we took partial profit already.

FIO

$COG – Subscribers shorted at 32 stop around the 33.50 level.

COG

iShares Biotech

What usually happens with these scenarios is a migration to the smaller names. Below are some of the junior biotech stocks that are getting some serious love lately and look higher. Please keep in mind that these names can also be “widow makers”, so be careful and use your stops. I am long MELA and KERX and may look to enter some others at better prices.

$MELA

MELA

$KERX

KERX

$AMLN

AMLN

$HGSI

HGSI

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“It’s a dangerous thing to confuse children with angels”- Thurston Howell

Germany finds itself in the same situation today. The country has become the rich Uncle that has bailed out the nephew (Greece) that constantly gets jammed up financially. You know, the guy that tapped his equity line to buy a 70” LCD TV in every room and maybe a small boat and a couple of BMW”s to dress up his driveway. The rich relative acquiesces and helps him out, he’s a good guy, only to find out that the dumb nephew then flies the family on a G-5 for a first class family vacation in Rio. The dumb nephew goes back to the rich Uncle for some more help. This time however, Uncle Rich guy is thinking about it, but going forward he wants total control of the nephews check book as he realizes his nephew is an an idiot and is incapable of even the most minimal austerity measures. The nephew doesn’t like this at all.

The gang meets today in Brussels and we may have some clarity on how this melodrama pans out at around 1PM.

Facebook $FB is filing its IPO this week and will list on the NYSE. Mark Zuckerberg will make about $ 20 billion, Accel Partners about $ 10B (they were the first fund that bet on Zuckerberg) Greylock Partners (Reid Hoffman of $LNKD and $GRPN fame) cashes in for about $ 1.5B, Peter Thiel of Paypal fame makes about $2.5B and Elevation Partners cashes in for about $1.7 B (Bono from U2 has a stake with them). And in the only thing Steve Balmer has done right in years, makes about $ 1B. Not personally, but from a $MSFT investment.

It will be an exciting week ahead as we will also see some important economic data as we move forward. The $SPY was fairly flat last week, so the bulls and bears are both wondering if that was only a pause that refreshes or sign of exhaustion with lower prices ahead.

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