Crunch Time


What a tape. Forget that the $SPX has gone from 666 to Friday’s close of 1569, but the S&P has also popped over 200 handles in just the last four months.

The market has shrugged off all challenges which include the Cyprus Crisis, Sequester Jesters, Fiscal Cliffs, slow growth, threatened government shut downs, a corroding Europe and all kinds of other fun things. When these macro events are in your face everyday, but the market still goes to new highs, well, that’s what they call “a tell”.  It ain’t rocket science.

I could easily make a case for a 10-15% correction. Things do pretty much still suck, but I won’t, because the fed is still in charge. Keep in mind that some stocks and sectors are correcting. Not all stocks are ripping everyday. If the global picture was “getting better”, then you wouldn’t see stocks like $RIO, $BHP and $CLF going shit house. Everything is a rotation, and its all  about overbought and oversold. Those stocks will find  strong bid at a price.

The bears have been boiled in acid and most of our “market experts” (of the perma bear variety) should be starting UFO advisory services. You know those “generational” guessers of which I speak. One valued “expert” called the top for the S&P for the year on Jan 2. But I’m rooting for him. So generational.

Anyhoo, the market is stupid overbought (as I’m still longer than Georgia pine), and you will see and hear the chant from the “top is in” crowd next week. You will hear this in volumes. We should correct, and probably will soon, but as I have said all along the pullbacks will be shallow and buyable.

Smaller size and tighter stops is probably a good idea up here.


Get the second quarter of the year off to a great start and come by for a free trial. Although yearend earnings season feels like it just ended, the fourth quarter numbers will start with a full frenzy in just a couple of weeks.

What You Get:

. Real time trade alerts

. Performance tracked nightly with new stock entries and stops

. Real time chat room hosted by me. Day trades and swing setups are discussed here.

. Nightly swing set ups a few times a week (with charts), where we hold names for durations of a day to two months, with exact entries, and stops.

. Entries & Exits are emailed and also given on the chat room.

. Detailed market wrap sent to your inbox every night.

. Comprehensive Sunday video which discusses the week that was and where we go next. A detailed review of our P&L names, along with analysis of any new ideas.






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