Straight from the mouth of the great bearded one: we’re in for more fiscal stimulus. Nonetheless, the market sold off aggressively after a strong rally day into the close –post Bernanke speech at 3:45pm.
I had a strong day. As I said last night I will be adding gold on any “homo-hammers” with the intention of trailing a stop loss, ideally until mid-July. Take a look at the futures chart below, I added $GLD calls around 11am. See the chart below for the classic homo-hammer formation at its greatest. A small pop in the $USD sent someone running for the door in gold. Also, its not a science, but TJWP would concur this always seems to happen right before lunch time.
I was well up in my $TNA position this morning, but decided to hit the golf course instead of focus on the Bernanke speech. Subsequently I was stopped out for a minute $20 gain, but nonetheless the trade had significant profit midday. This is another example of the volatility of a triple derivative. The stop loss placement is crucial and holding calls on them overnight can be excruciating.
Finally, my $RIMM short performed as I hoped. This truly is an unstoppable downtrend right now. Even with a strong market day by the S&P, Nasdaq, and Dow $RIMM (with 1.88 beta) still plummeted on high volume. I’m telling you now there is still plenty of room to fall for this company into earnings. With the profit I have made thus far, I may realize the majority and hold a small position into earnings on a tight leash. Trading consistently below the lower Bollinger Band now. Could either accelerate the fall, or maybe we could see a small run into earnings. Trailing stop losses will protect your neck. (Nathan Horton trades with no stop losses in the video below)
Between work and golfing I haven’t done much research recently, just taking time to stay on top of news and watch my select positions. I’m still (combined accounts) 95% cash. I’ll let you know if I see any interesting setups, but very much excited to see how we open and trade tomorrow following the Bernanke speech.
I’m hearing lots of rumblings on Ford ($F) at the moment – currently at the bottom of its channel. Some are expecting upgrades in the wake of the Asian numbers tomorrow.
May the Bernanke be with us.