This morning I went long the ProShares UltraPro S&P 500 (UPRO). We are already up big in the position.
The profit thesis, as I stated in my tweet, is to play the market bounce.
Am I bullish on this market? No way. What I'm doing is really psychology 101.
Market action is often irrational because it is based on human emotion. Knowing this, you can attempt to profit off of over reactions in the market. Put frankly, investors panicked on Monday and over sold this market short term. This is much more common than most traders think. Over reactions are a very common occurrence.
The Fed meeting today also helped our position. The idea was that the Fed was going to do something to help this market, and help they did. The Federal Reserve offered super-low interest rates for two more years and that helped push this market higher.
So what's our upside target for this bounce?
If you overlay the Fibonacci retracements you'll see that a bounce up to about $60 on UPRO is a 38.2% retracement. That's a 20% gain folks so that's my target area.
The profit thesis on this trade is to play the bounce. Therefore, we expect a V bottom pattern to form and we can set a real tight stop loss.
I think we're a good for at least one more up day before the bounce starts to die out and the market rolls over again to take the next leg down.
This is a risky play, but it's not as risky as some might think. When you have market over-reactions, you can usually play them for profits as the market corrects to a more normalized trend. Keep in mind that we are not going long into a strong downtrend. We're not trying to catch a falling knife. I guess to some extent we are but our profit thesis is just to play the short term bounce. We're not trying to be a contrarian and predict that the market is going to go into a strong uptrend now. We're not saying, "Oh yeah, we're so smart. We're going to predict a bottom right here." We're not trying to buy a bottom. No way. All we're trying to do, short term, is to play the over sold bounce then we're out of this market. I believe that there's a very high probability that this market will bounce, then roll over again and take the next leg down. Why? Because the market is still in a downtrend and that's what markets that are in downtrends do.
This morning I went long the ProShares UltraPro S&P 500 (UPRO). We are already up big in the position.
The profit thesis, as I stated in my tweet, is to play the market bounce.
Am I bullish on this market? No way. What I'm doing is really psychology 101.
Market action is often irrational because it is based on human emotion. Knowing this, you can attempt to profit off of over reactions in the market. Put frankly, investors panicked on Monday and over sold this market short term. This is much more common than most traders think. Over reactions are a very common occurrence.
The Fed meeting today also helped our position. The idea was that the Fed was going to do something to help this market, and help they did. The Federal Reserve offered super-low interest rates for two more years and that helped push this market higher.
So what's our upside target for this bounce?
If you overlay the Fibonacci retracements you'll see that a bounce up to about $60 on UPRO is a 38.2% retracement. That's a 20% gain folks so that's my target area.
The profit thesis on this trade is to play the bounce. Therefore, we expect a V bottom pattern to form and we can set a real tight stop loss.
I think we're a good for at least one more up day before the bounce starts to die out and the market rolls over again to take the next leg down.
This is a risky play, but it's not as risky as some might think. When you have market over-reactions, you can usually play them for profits as the market corrects to a more normalized trend. Keep in mind that we are not going long into a strong downtrend. We're not trying to catch a falling knife. I guess to some extent we are but our profit thesis is just to play the short term bounce. We're not trying to be a contrarian and predict that the market is going to go into a strong uptrend now. We're not saying, "Oh yeah, we're so smart. We're going to predict a bottom right here." We're not trying to buy a bottom. No way. All we're trying to do, short term, is to play the over sold bounce then we're out of this market. I believe that there's a very high probability that this market will bounce, then roll over again and take the next leg down. Why? Because the market is still in a downtrend and that's what markets that are in downtrends do.
This morning I went long the ProShares UltraPro S&P 500 (UPRO). We are already up big in the position.
The profit thesis, as I stated in my tweet, is to play the market bounce.
Am I bullish on this market? No way. What I'm doing is really psychology 101.
Market action is often irrational because it is based on human emotion. Knowing this, you can attempt to profit off of over reactions in the market. Put frankly, investors panicked on Monday and over sold this market short term. This is much more common than most traders think. Over reactions are a very common occurrence.
The Fed meeting today also helped our position. The idea was that the Fed was going to do something to help this market, and help they did. The Federal Reserve offered super-low interest rates for two more years and that helped push this market higher.
So what's our upside target for this bounce?
If you overlay the Fibonacci retracements you'll see that a bounce up to about $60 on UPRO is a 38.2% retracement. That's a 20% gain folks so that's my target area.
The profit thesis on this trade is to play the bounce. Therefore, we expect a V bottom pattern to form and we can set a real tight stop loss.
I think we're a good for at least one more up day before the bounce starts to die out and the market rolls over again to take the next leg down.
This is a risky play, but it's not as risky as some might think. When you have market over-reactions, you can usually play them for profits as the market corrects to a more normalized trend. Keep in mind that we are not going long into a strong downtrend. We're not trying to catch a falling knife. I guess to some extent we are but our profit thesis is just to play the short term bounce. We're not trying to be a contrarian and predict that the market is going to go into a strong uptrend now. We're not saying, "Oh yeah, we're so smart. We're going to predict a bottom right here." We're not trying to buy a bottom. No way. All we're trying to do, short term, is to play the over sold bounce then we're out of this market. I believe that there's a very high probability that this market will bounce, then roll over again and take the next leg down. Why? Because the market is still in a downtrend and that's what markets that are in downtrends do.
Goldman Sachs is up to their dark ways again, this time with HCA Holdings (HCA).
In March, Goldman Sachs helped take hospital operator HCA Holdings public with an over inflated IPO price of $30.
Next, Goldman Sachs had their stock analyst begin coverage of the company with a BUY rating and a price target of $38.
Now that's a bogus conflict of interest to come out and say you've begun coverage on a stock with a buy rating and it's a stock you took public. Obviously, the company paid you to take them public and to pump their stock using so called "analyst coverage".
HCA Holdings came out with their earnings last week that were less than estimates and the stock took a dive. Had you bought this IPO or bought on Goldman Sachs buy rating, you just got screwed because the stock sold off.
But it gets even worse. Goldman Sachs downgraded their rating on HCA last week from BUY to NEUTRAL.
You just got pumped and dumped.
HCA was taken public at an IPO price that was too high by Goldman Sachs. It was then pumped by Goldman Sachs who helped take the company public. Then, after all the suckers piled in, the earnings report comes out that misses estimates and Goldman Sachs downgrades it from a buy to a neutral rating. Wham bam thank you ma'am. A classic Goldman Sachs IPO pump and dump.
And Goldman Sachs isn't even trying to hide their IPO pumping. They paid Bloomberg to do a flattering report on how stock appreciates over twice as much when Goldman Sachs takes a company public compared with other financial institutions.
Why is Goldman Sachs allowed to run pump and dump schemes while amateur traders like you and me go to jail for running a pump and dump?
Goldman Sachs is allowed to do whatever they want on Wall Street because most politicians from both parties have accepted huge campaign contributions from them. Put another way, most politicians are on Goldman Sachs payroll.
But it gets even worse.
Goldman Sachs gives senators jobs if they were a good little boy and voted the way Goldman Sachs wanted while in office.
But jobs also flow the other way. Once a Goldman Sachs bought politician wins an office, he then hires a Goldman Sachs employee to work in critical public financial sector positions.
This policy of politicians who received campaign contributions from Goldman Sachs appointing Goldman Sachs employees for government jobs, and senators being hired by Goldman Sachs after their voted out of office is called the Revolving Door.
This is the reason why Goldman Sach's can get away with running pump and dump scams.
Goldman Sachs is up to their dark ways again, this time with HCA Holdings (HCA).
In March, Goldman Sachs helped take hospital operator HCA Holdings public with an over inflated IPO price of $30.
Next, Goldman Sachs had their stock analyst begin coverage of the company with a BUY rating and a price target of $38.
Now that's a bogus conflict of interest to come out and say you've begun coverage on a stock with a buy rating and it's a stock you took public. Obviously, the company paid you to take them public and to pump their stock using so called "analyst coverage".
HCA Holdings came out with their earnings last week that were less than estimates and the stock took a dive. Had you bought this IPO or bought on Goldman Sachs buy rating, you just got screwed because the stock sold off.
But it gets even worse. Goldman Sachs downgraded their rating on HCA last week from BUY to NEUTRAL.
You just got pumped and dumped.
HCA was taken public at an IPO price that was too high by Goldman Sachs. It was then pumped by Goldman Sachs who helped take the company public. Then, after all the suckers piled in, the earnings report comes out that misses estimates and Goldman Sachs downgrades it from a buy to a neutral rating. Wham bam thank you ma'am. A classic Goldman Sachs IPO pump and dump.
And Goldman Sachs isn't even trying to hide their IPO pumping. They paid Bloomberg to do a flattering report on how stock appreciates over twice as much when Goldman Sachs takes a company public compared with other financial institutions.
Why is Goldman Sachs allowed to run pump and dump schemes while amateur traders like you and me go to jail for running a pump and dump?
Goldman Sachs is allowed to do whatever they want on Wall Street because most politicians from both parties have accepted huge campaign contributions from them. Put another way, most politicians are on Goldman Sachs payroll.
But it gets even worse.
Goldman Sachs gives senators jobs if they were a good little boy and voted the way Goldman Sachs wanted while in office.
But jobs also flow the other way. Once a Goldman Sachs bought politician wins an office, he then hires a Goldman Sachs employee to work in critical public financial sector positions.
This policy of politicians who received campaign contributions from Goldman Sachs appointing Goldman Sachs employees for government jobs, and senators being hired by Goldman Sachs after their voted out of office is called the Revolving Door.
This is the reason why Goldman Sach's can get away with running pump and dump scams.
Goldman Sachs is up to their dark ways again, this time with HCA Holdings (HCA).
In March, Goldman Sachs helped take hospital operator HCA Holdings public with an over inflated IPO price of $30.
Next, Goldman Sachs had their stock analyst begin coverage of the company with a BUY rating and a price target of $38.
Now that's a bogus conflict of interest to come out and say you've begun coverage on a stock with a buy rating and it's a stock you took public. Obviously, the company paid you to take them public and to pump their stock using so called "analyst coverage".
HCA Holdings came out with their earnings last week that were less than estimates and the stock took a dive. Had you bought this IPO or bought on Goldman Sachs buy rating, you just got screwed because the stock sold off.
But it gets even worse. Goldman Sachs downgraded their rating on HCA last week from BUY to NEUTRAL.
You just got pumped and dumped.
HCA was taken public at an IPO price that was too high by Goldman Sachs. It was then pumped by Goldman Sachs who helped take the company public. Then, after all the suckers piled in, the earnings report comes out that misses estimates and Goldman Sachs downgrades it from a buy to a neutral rating. Wham bam thank you ma'am. A classic Goldman Sachs IPO pump and dump.
And Goldman Sachs isn't even trying to hide their IPO pumping. They paid Bloomberg to do a flattering report on how stock appreciates over twice as much when Goldman Sachs takes a company public compared with other financial institutions.
Why is Goldman Sachs allowed to run pump and dump schemes while amateur traders like you and me go to jail for running a pump and dump?
Goldman Sachs is allowed to do whatever they want on Wall Street because most politicians from both parties have accepted huge campaign contributions from them. Put another way, most politicians are on Goldman Sachs payroll.
But it gets even worse.
Goldman Sachs gives senators jobs if they were a good little boy and voted the way Goldman Sachs wanted while in office.
But jobs also flow the other way. Once a Goldman Sachs bought politician wins an office, he then hires a Goldman Sachs employee to work in critical public financial sector positions.
This policy of politicians who received campaign contributions from Goldman Sachs appointing Goldman Sachs employees for government jobs, and senators being hired by Goldman Sachs after their voted out of office is called the Revolving Door.
This is the reason why Goldman Sach's can get away with running pump and dump scams.
You guys are awesome. I love you guys. I pound on you guys pretty hard and my lectures get pretty intense at times but it's only because I care about you making money.
You guys are so awesome that you blew by my web hosting provider allocated bandwidth setting. That's right, you exceeded the bandwidth for the month that I pay for with my hosting provider and you blew my website offline. Damn you guys are badass.
I'm going to have to reach deeper into my pocket and dish out the bucks to increase my web hosting plan because so many of you guys have made GuerillaStockTrading.com one of the most popular stock trading blogs on the Internet!
A lot of website owners would be mad about this. A lot of website owners would be all stressed out, pulling their hair out, all pissed off about being de-listed out of Google's search engine because their website was down. Maybe they'd be pissed off at all the people they might lose in terms of viewership because they'll never come back to that website again after not getting the material they were looking for. There's a lot of people out there like this. They are the glass is always half empty kind of people and they carry their negativity into their stock trading.
Many of the greatest stock traders of all time have encouraged people to view the glass as half full instead of half empty. It's much easier and more profitable to make money by being positive and looking for opportunities in everything. If you are a pessimist, a real negative guy, why would you ever even try to start your own business? These are the kind of people that say things like, "Why should I even have a business because the government is going to tax me to much." Many things in life you would never attempt to do because you're a pessimist, you're a negative guy.
Business owners and successful stock trader have something in common: they are both optimists.
Remember this cliché: There's always a bull market going on somewhere. It's up to you to find it. That's the philosophy of successful traders.
Now let's get to trading.
I was stopped out of TZA (Small Cap Bear) today. I needed at least a 2.5% upward move today, and I barely got a 0.5% move. Remember, my profit thesis was big down days on Thursday and Friday on the Russell 2000, then close the trade out on Friday for a quick 5% to 10% profit. I don't want to hold this short into the weekend news cycle because Dems and Repubs may come to a compromise on the debt ceiling over the weekend and I don't want to be short when they do. So knowing that this was risky and trying to squeeze maximum profits out of the market before the weekend, I set a very tight stop loss on TZA. That stop loss was hit and so I'm out of the trade.
I'm back in AGQ (Ultra Silver) because we've had a nice pullback over the last 2 days. AGQ is still in an uptrend and so you buy on pullbacks in an uptrending stock.
You guys are awesome. I love you guys. I pound on you guys pretty hard and my lectures get pretty intense at times but it's only because I care about you making money.
You guys are so awesome that you blew by my web hosting provider allocated bandwidth setting. That's right, you exceeded the bandwidth for the month that I pay for with my hosting provider and you blew my website offline. Damn you guys are badass.
I'm going to have to reach deeper into my pocket and dish out the bucks to increase my web hosting plan because so many of you guys have made GuerillaStockTrading.com one of the most popular stock trading blogs on the Internet!
A lot of website owners would be mad about this. A lot of website owners would be all stressed out, pulling their hair out, all pissed off about being de-listed out of Google's search engine because their website was down. Maybe they'd be pissed off at all the people they might lose in terms of viewership because they'll never come back to that website again after not getting the material they were looking for. There's a lot of people out there like this. They are the glass is always half empty kind of people and they carry their negativity into their stock trading.
Many of the greatest stock traders of all time have encouraged people to view the glass as half full instead of half empty. It's much easier and more profitable to make money by being positive and looking for opportunities in everything. If you are a pessimist, a real negative guy, why would you ever even try to start your own business? These are the kind of people that say things like, "Why should I even have a business because the government is going to tax me to much." Many things in life you would never attempt to do because you're a pessimist, you're a negative guy.
Business owners and successful stock trader have something in common: they are both optimists.
Remember this cliché: There's always a bull market going on somewhere. It's up to you to find it. That's the philosophy of successful traders.
Now let's get to trading.
I was stopped out of TZA (Small Cap Bear) today. I needed at least a 2.5% upward move today, and I barely got a 0.5% move. Remember, my profit thesis was big down days on Thursday and Friday on the Russell 2000, then close the trade out on Friday for a quick 5% to 10% profit. I don't want to hold this short into the weekend news cycle because Dems and Repubs may come to a compromise on the debt ceiling over the weekend and I don't want to be short when they do. So knowing that this was risky and trying to squeeze maximum profits out of the market before the weekend, I set a very tight stop loss on TZA. That stop loss was hit and so I'm out of the trade.
I'm back in AGQ (Ultra Silver) because we've had a nice pullback over the last 2 days. AGQ is still in an uptrend and so you buy on pullbacks in an uptrending stock.
You guys are awesome. I love you guys. I pound on you guys pretty hard and my lectures get pretty intense at times but it's only because I care about you making money.
You guys are so awesome that you blew by my web hosting provider allocated bandwidth setting. That's right, you exceeded the bandwidth for the month that I pay for with my hosting provider and you blew my website offline. Damn you guys are badass.
I'm going to have to reach deeper into my pocket and dish out the bucks to increase my web hosting plan because so many of you guys have made GuerillaStockTrading.com one of the most popular stock trading blogs on the Internet!
A lot of website owners would be mad about this. A lot of website owners would be all stressed out, pulling their hair out, all pissed off about being de-listed out of Google's search engine because their website was down. Maybe they'd be pissed off at all the people they might lose in terms of viewership because they'll never come back to that website again after not getting the material they were looking for. There's a lot of people out there like this. They are the glass is always half empty kind of people and they carry their negativity into their stock trading.
Many of the greatest stock traders of all time have encouraged people to view the glass as half full instead of half empty. It's much easier and more profitable to make money by being positive and looking for opportunities in everything. If you are a pessimist, a real negative guy, why would you ever even try to start your own business? These are the kind of people that say things like, "Why should I even have a business because the government is going to tax me to much." Many things in life you would never attempt to do because you're a pessimist, you're a negative guy.
Business owners and successful stock trader have something in common: they are both optimists.
Remember this cliché: There's always a bull market going on somewhere. It's up to you to find it. That's the philosophy of successful traders.
Now let's get to trading.
I was stopped out of TZA (Small Cap Bear) today. I needed at least a 2.5% upward move today, and I barely got a 0.5% move. Remember, my profit thesis was big down days on Thursday and Friday on the Russell 2000, then close the trade out on Friday for a quick 5% to 10% profit. I don't want to hold this short into the weekend news cycle because Dems and Repubs may come to a compromise on the debt ceiling over the weekend and I don't want to be short when they do. So knowing that this was risky and trying to squeeze maximum profits out of the market before the weekend, I set a very tight stop loss on TZA. That stop loss was hit and so I'm out of the trade.
I'm back in AGQ (Ultra Silver) because we've had a nice pullback over the last 2 days. AGQ is still in an uptrend and so you buy on pullbacks in an uptrending stock.
Lion's Gate Entertainment has just announced that they have hired Charlie Sheen to star in a new sitcom called Anger Management.
Mr. Tiger Blood Charlie Sheen with his record of hitting women as well as going on a drug induced hate rant in front of the public, seems like the least likely person to be picked as the star of a show on Anger Management.
Doesn't Lion's Gate realize who their dealing with?
This is the same guy who has got lawsuits against multiple media entities.
Doesn't Lion's Gate know that Charlie Sheen has even sued the Japanese Tsunami? Yeah because it replaced him as the biggest disaster on TV.
Why does Lion's Gate think Charlie Sheen's character only live with males on Two and a Half Men? Because in his role, if he lived with a woman, then he would relapse into real life and begin to beat up the actress.
Doesn't Lion's Gate know the real reason why CBS pulled the plug on Sheen's hit sitcom "Two and a Half Men"? Because on Groundhog Day, Charlie saw his dealer which meant 6 more weeks of hookers and porn stars!
This is the same guy that grossed America out with his banging 7 gram rocks and his porn star goddesses.
Maybe Charlie Sheen isn't bi-polar after all, maybe he really is bi-winning at Lion's Gate shareholders expense.
He's baaaaaack.
Lion's Gate Entertainment has just announced that they have hired Charlie Sheen to star in a new sitcom called Anger Management.
Mr. Tiger Blood Charlie Sheen with his record of hitting women as well as going on a drug induced hate rant in front of the public, seems like the least likely person to be picked as the star of a show on Anger Management.
Doesn't Lion's Gate realize who their dealing with?
This is the same guy who has got lawsuits against multiple media entities.
Doesn't Lion's Gate know that Charlie Sheen has even sued the Japanese Tsunami? Yeah because it replaced him as the biggest disaster on TV.
Why does Lion's Gate think Charlie Sheen's character only live with males on Two and a Half Men? Because in his role, if he lived with a woman, then he would relapse into real life and begin to beat up the actress.
Doesn't Lion's Gate know the real reason why CBS pulled the plug on Sheen's hit sitcom "Two and a Half Men"? Because on Groundhog Day, Charlie saw his dealer which meant 6 more weeks of hookers and porn stars!
This is the same guy that grossed America out with his banging 7 gram rocks and his porn star goddesses.
Maybe Charlie Sheen isn't bi-polar after all, maybe he really is bi-winning at Lion's Gate shareholders expense.
He's baaaaaack.
Lion's Gate Entertainment has just announced that they have hired Charlie Sheen to star in a new sitcom called Anger Management.
Mr. Tiger Blood Charlie Sheen with his record of hitting women as well as going on a drug induced hate rant in front of the public, seems like the least likely person to be picked as the star of a show on Anger Management.
Doesn't Lion's Gate realize who their dealing with?
This is the same guy who has got lawsuits against multiple media entities.
Doesn't Lion's Gate know that Charlie Sheen has even sued the Japanese Tsunami? Yeah because it replaced him as the biggest disaster on TV.
Why does Lion's Gate think Charlie Sheen's character only live with males on Two and a Half Men? Because in his role, if he lived with a woman, then he would relapse into real life and begin to beat up the actress.
Doesn't Lion's Gate know the real reason why CBS pulled the plug on Sheen's hit sitcom "Two and a Half Men"? Because on Groundhog Day, Charlie saw his dealer which meant 6 more weeks of hookers and porn stars!
This is the same guy that grossed America out with his banging 7 gram rocks and his porn star goddesses.
Maybe Charlie Sheen isn't bi-polar after all, maybe he really is bi-winning at Lion's Gate shareholders expense.
Hey guys, it's been awhile since I put together a rock out stock pick video for you so here you go.
This is my latest stock buy Level 3 Communications (LVLT) that I bought in my own trading account today, right off the 50 day moving average.
I put together this research video for you set to some rock'in music.
Who say's stock research has to be dry and boring?
Enjoy.
Hey guys, it's been awhile since I put together a rock out stock pick video for you so here you go.
This is my latest stock buy Level 3 Communications (LVLT) that I bought in my own trading account today, right off the 50 day moving average.
I put together this research video for you set to some rock'in music.
Who say's stock research has to be dry and boring?
Enjoy.
Hey guys, it's been awhile since I put together a rock out stock pick video for you so here you go.
This is my latest stock buy Level 3 Communications (LVLT) that I bought in my own trading account today, right off the 50 day moving average.
I put together this research video for you set to some rock'in music.
Who say's stock research has to be dry and boring?
Enjoy.
The S&P 500 took technical damage today. I'm downgrading the S&P 500 from an uptrend to a very weak uptrend. The bulls have a very weak advantage over the bears. If we have another day or two like today, that can change very quickly as I talked about in this week's forecast video I published over the weekend.
If we look at the Stock Trader's Almanac, we see that the first half of July is usually stronger than the second half. There are a greater number of days with a higher probability of down days that there are up days.
I don't like a short S&P 500 play yet. I think there's a better way to play the downside folks.
I've said it for months now that this is all about XLF (Financials) and I've talked about how Financials are leading this market lower. We are a critical test of the June lows at $14.56. If this support level is broke, look out below. Also, notice how the sell side volume is increasing as we get closer to the major June low support. This suggests a good probability that the June support will be taken out. But what's really bearish is the MACD breaking below the 0 line and the red line spike on the AROON which is a sell signal.
Folks, I like playing this downward move by buying the ProShares UltraShort Financials ETF (SKF). I bought this ETF for my own trading account right before market close today and I tweeted to this buy within seconds of my order. In fact, it dropped a little bit and so by the time I tweeted my order, you could have bought SKF cheaper than what I did. If you're more of a conservative trader, you may want to wait to see what happens at the 200 day moving average. It's testing the 200 day moving average right now and so more conservative traders will want to wait for a break and then maybe a day or two to confirm the break above the 200 day moving average.
Another good play is FAZ and I've added that as a pick to the website as well. FAZ is a three times leveraged short Financials play called the Direxion Daily Financial Bear 3X Shs ETF.
Why do I like these two stocks better than shorting the S&P 500 right now? It's all about the trend. The S&P 500 is in a very weak uptrend. SKF and FAZ are in strong downtrends. It is almost always a better gambit, a stronger line, to short a strong downtrending stock than it is to short a very weak uptrending stock.
The S&P 500 took technical damage today. I'm downgrading the S&P 500 from an uptrend to a very weak uptrend. The bulls have a very weak advantage over the bears. If we have another day or two like today, that can change very quickly as I talked about in this week's forecast video I published over the weekend.
If we look at the Stock Trader's Almanac, we see that the first half of July is usually stronger than the second half. There are a greater number of days with a higher probability of down days that there are up days.
I don't like a short S&P 500 play yet. I think there's a better way to play the downside folks.
I've said it for months now that this is all about XLF (Financials) and I've talked about how Financials are leading this market lower. We are a critical test of the June lows at $14.56. If this support level is broke, look out below. Also, notice how the sell side volume is increasing as we get closer to the major June low support. This suggests a good probability that the June support will be taken out. But what's really bearish is the MACD breaking below the 0 line and the red line spike on the AROON which is a sell signal.
Folks, I like playing this downward move by buying the ProShares UltraShort Financials ETF (SKF). I bought this ETF for my own trading account right before market close today and I tweeted to this buy within seconds of my order. In fact, it dropped a little bit and so by the time I tweeted my order, you could have bought SKF cheaper than what I did. If you're more of a conservative trader, you may want to wait to see what happens at the 200 day moving average. It's testing the 200 day moving average right now and so more conservative traders will want to wait for a break and then maybe a day or two to confirm the break above the 200 day moving average.
CLICK HERE TO SIGN UP FOR A FREE DAILY EMAIL ALERT ON THE TREND OF THE PROSHARES ULTRASHORT FINANCIALS ETF (SKF). JUST LEAVE THE PACF_SKF IN FOR THE SYMBOL AND ENTER YOUR EMAIL ADDRESS
Another good play is FAZ and I've added that as a pick to the website as well. FAZ is a three times leveraged short Financials play called the Direxion Daily Financial Bear 3X Shs ETF.
CLICK HERE TO SIGN UP FOR A FREE DAILY EMAIL ALERT ON THE TREND OF THE DIREXION DAILY FINANCIAL BEAR 3X ETF (FAZ). JUST LEAVE THE PACF_FAZ IN FOR THE SYMBOL AND ENTER YOUR EMAIL ADDRESS
Why do I like these two stocks better than shorting the S&P 500 right now? It's all about the trend. The S&P 500 is in a very weak uptrend. SKF and FAZ are in strong downtrends. It is almost always a better gambit, a stronger line, to short a strong downtrending stock than it is to short a very weak uptrending stock.
The S&P 500 took technical damage today. I'm downgrading the S&P 500 from an uptrend to a very weak uptrend. The bulls have a very weak advantage over the bears. If we have another day or two like today, that can change very quickly as I talked about in this week's forecast video I published over the weekend.
If we look at the Stock Trader's Almanac, we see that the first half of July is usually stronger than the second half. There are a greater number of days with a higher probability of down days that there are up days.
I don't like a short S&P 500 play yet. I think there's a better way to play the downside folks.
I've said it for months now that this is all about XLF (Financials) and I've talked about how Financials are leading this market lower. We are a critical test of the June lows at $14.56. If this support level is broke, look out below. Also, notice how the sell side volume is increasing as we get closer to the major June low support. This suggests a good probability that the June support will be taken out. But what's really bearish is the MACD breaking below the 0 line and the red line spike on the AROON which is a sell signal.
Folks, I like playing this downward move by buying the ProShares UltraShort Financials ETF (SKF). I bought this ETF for my own trading account right before market close today and I tweeted to this buy within seconds of my order. In fact, it dropped a little bit and so by the time I tweeted my order, you could have bought SKF cheaper than what I did. If you're more of a conservative trader, you may want to wait to see what happens at the 200 day moving average. It's testing the 200 day moving average right now and so more conservative traders will want to wait for a break and then maybe a day or two to confirm the break above the 200 day moving average.
CLICK HERE TO SIGN UP FOR A FREE DAILY EMAIL ALERT ON THE TREND OF THE PROSHARES ULTRASHORT FINANCIALS ETF (SKF). JUST LEAVE THE PACF_SKF IN FOR THE SYMBOL AND ENTER YOUR EMAIL ADDRESS
Another good play is FAZ and I've added that as a pick to the website as well. FAZ is a three times leveraged short Financials play called the Direxion Daily Financial Bear 3X Shs ETF.
CLICK HERE TO SIGN UP FOR A FREE DAILY EMAIL ALERT ON THE TREND OF THE DIREXION DAILY FINANCIAL BEAR 3X ETF (FAZ). JUST LEAVE THE PACF_FAZ IN FOR THE SYMBOL AND ENTER YOUR EMAIL ADDRESS
Why do I like these two stocks better than shorting the S&P 500 right now? It's all about the trend. The S&P 500 is in a very weak uptrend. SKF and FAZ are in strong downtrends. It is almost always a better gambit, a stronger line, to short a strong downtrending stock than it is to short a very weak uptrending stock.
People hate Deutsche Bank, like most banks, for their involvement in the housing crash.
Deutsche Bank basically approved in coach roaches for home loans then stuck AIG or the government with the bill when these loans went into default. That's illegal as the government requires lenders to follow certain rules on Freddie and Fannie home loans.
The Fed is suing Deutsche Bank for mortgage fraud.
That's the way to handle this problem. Basically the government is saying we had to bail you out. Now we're going to get that money back in fines for you making risky loans by approving even ants for a home loan.
Tom Cruise Crazy conservative Christians have their own method of dealing with Deutsche Bank: an exorcism of a Deutsche Bank ATM machine.
So how is Deutsche Bank handling all this hostility from the public?
Deutsche Bank, which fired 300 British employees during the financial crisis and is now exposed to $2.37 billion of questionable Greek debt, treated its hedge fund clients to 48 hours of food and fun by renting out a five-star golf resort in Hertfordshire, England. Deutsche Bank spent close to $2 million on the party, which included a 45-minute set by Janet Jackson. Janet Jackson was paid $800,000 for her 45 minute performance which comes out to $17,700 a minute!
People are going through hard times because of past actions of bankers like Deutsche Bank and what does Deutsche Bank do in response?
Woo hoo party! You’re just jealous you don’t have all the money like us! Woo hoo party!
People hate Deutsche Bank, like most banks, for their involvement in the housing crash.
Deutsche Bank basically approved in coach roaches for home loans then stuck AIG or the government with the bill when these loans went into default. That's illegal as the government requires lenders to follow certain rules on Freddie and Fannie home loans.
The Fed is suing Deutsche Bank for mortgage fraud.
That's the way to handle this problem. Basically the government is saying we had to bail you out. Now we're going to get that money back in fines for you making risky loans by approving even ants for a home loan.
Tom Cruise Crazy conservative Christians have their own method of dealing with Deutsche Bank: an exorcism of a Deutsche Bank ATM machine.
So how is Deutsche Bank handling all this hostility from the public?
Deutsche Bank, which fired 300 British employees during the financial crisis and is now exposed to $2.37 billion of questionable Greek debt, treated its hedge fund clients to 48 hours of food and fun by renting out a five-star golf resort in Hertfordshire, England. Deutsche Bank spent close to $2 million on the party, which included a 45-minute set by Janet Jackson. Janet Jackson was paid $800,000 for her 45 minute performance which comes out to $17,700 a minute!
People are going through hard times because of past actions of bankers like Deutsche Bank and what does Deutsche Bank do in response?
Woo hoo party! You’re just jealous you don’t have all the money like us! Woo hoo party!
People hate Deutsche Bank, like most banks, for their involvement in the housing crash.
Deutsche Bank basically approved in coach roaches for home loans then stuck AIG or the government with the bill when these loans went into default. That's illegal as the government requires lenders to follow certain rules on Freddie and Fannie home loans.
The Fed is suing Deutsche Bank for mortgage fraud.
That's the way to handle this problem. Basically the government is saying we had to bail you out. Now we're going to get that money back in fines for you making risky loans by approving even ants for a home loan.
Tom Cruise Crazy conservative Christians have their own method of dealing with Deutsche Bank: an exorcism of a Deutsche Bank ATM machine.
So how is Deutsche Bank handling all this hostility from the public?
Deutsche Bank, which fired 300 British employees during the financial crisis and is now exposed to $2.37 billion of questionable Greek debt, treated its hedge fund clients to 48 hours of food and fun by renting out a five-star golf resort in Hertfordshire, England. Deutsche Bank spent close to $2 million on the party, which included a 45-minute set by Janet Jackson. Janet Jackson was paid $800,000 for her 45 minute performance which comes out to $17,700 a minute!
People are going through hard times because of past actions of bankers like Deutsche Bank and what does Deutsche Bank do in response?
Woo hoo party! You’re just jealous you don’t have all the money like us! Woo hoo party!
It's a dangerous time right now to invest in IPOs because investment banks are trying their best to screw investors.
The underwriters of the LinkedIn (LNKD) IPO are the Triumvirate Of Evil; Bank of America/Merrill Lynch, UBS, and JPMorgan are all advising their clients to buy up shares of LinkedIn.
Have you seen how much LinkedIn reported as income on their financials for the last year? LinkedIn made $1.7 million last year before taxes.
This means that the $45 IPO price set on the stock made the P/E ratio at about 1,000.
After BofA, UBS, and JPMorgan began advising clients buy LinkedIn, the stock has risen to about $94 a share. That puts their P/E ratio at over 2,605!
Who would buy into a company for $94 a share when the company only made $1.7 million last year?
Well, who would pump assets and then short them at the same time?
Who would just pick a house and say, no one else has a foreclosure on this house? We'll foreclose on it.
Who would hype an investment and call it safe and as "good as cash"?
Yes folks, JPMorgan, BofA, and UBS have done all of the above and are now advising their clients to buy LinkedIn.
So let me get this straight. These three banks were the underwriters of the LinkedIn IPO. They set the IPO sky high with a P/E of over 1,000. Now they are advising their clients to buy LinkedIn at these current elevated levels?
What happened to the $100 million Merrill Lynch & Co. and New York State Attorney General Eliot Spitzer conflict-of-interest case? For those who don't remember, then Merrill Lynch, now B of A, settled with the New York State Attorney General Eliot Spitzer for $100 million dollars back in 2003. Spitzer sued Merrill because the brokerage firm's research analysts gave more favorable stock ratings to companies that used Merrill to raise money by selling their stock and bonds to the public.
The whole idea of the $100 million settlement was to send a message to investment bankers that analysts are compensated only for activities intended to benefit investors.
Clearly these investment analysts are now giving more favorable stock ratings to companies they raised money for and took public, which is in direct violation of the Elliot Spitzer 2003 research settlement.
BofA slapped a $92 price target on the stock, while JPMorgan set an $85 price target and UBS initiated LNKD at buy, with a $90 price target.
But wait a second! LinkedIn is at $94. It's already above all these target levels. Shouldn't downgrades usually come once target levels have been reached?
This is nothing more than banks being able to say see, we set these targets and LinkedIn hit them so we weren't scamming anyone. But if you look closely enough, you'll see they came out with these buy recommendations and target prices after LinkedIn already crossed above these levels.
The fact that underwriters in an IPO can then turn around and pump the stock via their research analysts is so backwards it's like sitting on the TV and watching the couch.
Now the Triumvirate Of Evil that brought you LinkedIn is now going to bring you, Zynga, the company behind the annoying Facebook-spamming games FarmVille and Mafia Wars.
Zynga's annual revenue is estimated to be about $1 billion.
If you take the same opening valuation that LinkedIn was given, a P/E of over 2,600. And if every 2 million dollars in income amounts to a $94 per share price, then Zynga's opening IPO price should be $47,000,000,000.
It's a dangerous time right now to invest in IPOs because investment banks are trying their best to screw investors.
The underwriters of the LinkedIn (LNKD) IPO are the Triumvirate Of Evil; Bank of America/Merrill Lynch, UBS, and JPMorgan are all advising their clients to buy up shares of LinkedIn.
Have you seen how much LinkedIn reported as income on their financials for the last year? LinkedIn made $1.7 million last year before taxes.
This means that the $45 IPO price set on the stock made the P/E ratio at about 1,000.
After BofA, UBS, and JPMorgan began advising clients buy LinkedIn, the stock has risen to about $94 a share. That puts their P/E ratio at over 2,605!
Who would buy into a company for $94 a share when the company only made $1.7 million last year?
Well, who would pump assets and then short them at the same time?
Who would just pick a house and say, no one else has a foreclosure on this house? We'll foreclose on it.
Who would hype an investment and call it safe and as "good as cash"?
Yes folks, JPMorgan, BofA, and UBS have done all of the above and are now advising their clients to buy LinkedIn.
So let me get this straight. These three banks were the underwriters of the LinkedIn IPO. They set the IPO sky high with a P/E of over 1,000. Now they are advising their clients to buy LinkedIn at these current elevated levels?
What happened to the $100 million Merrill Lynch & Co. and New York State Attorney General Eliot Spitzer conflict-of-interest case? For those who don't remember, then Merrill Lynch, now B of A, settled with the New York State Attorney General Eliot Spitzer for $100 million dollars back in 2003. Spitzer sued Merrill because the brokerage firm's research analysts gave more favorable stock ratings to companies that used Merrill to raise money by selling their stock and bonds to the public.
The whole idea of the $100 million settlement was to send a message to investment bankers that analysts are compensated only for activities intended to benefit investors.
Clearly these investment analysts are now giving more favorable stock ratings to companies they raised money for and took public, which is in direct violation of the Elliot Spitzer 2003 research settlement.
BofA slapped a $92 price target on the stock, while JPMorgan set an $85 price target and UBS initiated LNKD at buy, with a $90 price target.
But wait a second! LinkedIn is at $94. It's already above all these target levels. Shouldn't downgrades usually come once target levels have been reached?
This is nothing more than banks being able to say see, we set these targets and LinkedIn hit them so we weren't scamming anyone. But if you look closely enough, you'll see they came out with these buy recommendations and target prices after LinkedIn already crossed above these levels.
The fact that underwriters in an IPO can then turn around and pump the stock via their research analysts is so backwards it's like sitting on the TV and watching the couch.
Now the Triumvirate Of Evil that brought you LinkedIn is now going to bring you, Zynga, the company behind the annoying Facebook-spamming games FarmVille and Mafia Wars.
Zynga's annual revenue is estimated to be about $1 billion.
If you take the same opening valuation that LinkedIn was given, a P/E of over 2,600. And if every 2 million dollars in income amounts to a $94 per share price, then Zynga's opening IPO price should be $47,000,000,000.
It's a dangerous time right now to invest in IPOs because investment banks are trying their best to screw investors.
The underwriters of the LinkedIn (LNKD) IPO are the Triumvirate Of Evil; Bank of America/Merrill Lynch, UBS, and JPMorgan are all advising their clients to buy up shares of LinkedIn.
Have you seen how much LinkedIn reported as income on their financials for the last year? LinkedIn made $1.7 million last year before taxes.
This means that the $45 IPO price set on the stock made the P/E ratio at about 1,000.
After BofA, UBS, and JPMorgan began advising clients buy LinkedIn, the stock has risen to about $94 a share. That puts their P/E ratio at over 2,605!
Who would buy into a company for $94 a share when the company only made $1.7 million last year?
Well, who would pump assets and then short them at the same time?
Who would just pick a house and say, no one else has a foreclosure on this house? We'll foreclose on it.
Who would hype an investment and call it safe and as "good as cash"?
Yes folks, JPMorgan, BofA, and UBS have done all of the above and are now advising their clients to buy LinkedIn.
So let me get this straight. These three banks were the underwriters of the LinkedIn IPO. They set the IPO sky high with a P/E of over 1,000. Now they are advising their clients to buy LinkedIn at these current elevated levels?
What happened to the $100 million Merrill Lynch & Co. and New York State Attorney General Eliot Spitzer conflict-of-interest case? For those who don't remember, then Merrill Lynch, now B of A, settled with the New York State Attorney General Eliot Spitzer for $100 million dollars back in 2003. Spitzer sued Merrill because the brokerage firm's research analysts gave more favorable stock ratings to companies that used Merrill to raise money by selling their stock and bonds to the public.
The whole idea of the $100 million settlement was to send a message to investment bankers that analysts are compensated only for activities intended to benefit investors.
Clearly these investment analysts are now giving more favorable stock ratings to companies they raised money for and took public, which is in direct violation of the Elliot Spitzer 2003 research settlement.
BofA slapped a $92 price target on the stock, while JPMorgan set an $85 price target and UBS initiated LNKD at buy, with a $90 price target.
But wait a second! LinkedIn is at $94. It's already above all these target levels. Shouldn't downgrades usually come once target levels have been reached?
This is nothing more than banks being able to say see, we set these targets and LinkedIn hit them so we weren't scamming anyone. But if you look closely enough, you'll see they came out with these buy recommendations and target prices after LinkedIn already crossed above these levels.
The fact that underwriters in an IPO can then turn around and pump the stock via their research analysts is so backwards it's like sitting on the TV and watching the couch.
Now the Triumvirate Of Evil that brought you LinkedIn is now going to bring you, Zynga, the company behind the annoying Facebook-spamming games FarmVille and Mafia Wars.
Zynga's annual revenue is estimated to be about $1 billion.
If you take the same opening valuation that LinkedIn was given, a P/E of over 2,600. And if every 2 million dollars in income amounts to a $94 per share price, then Zynga's opening IPO price should be $47,000,000,000.
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This morning I went long the ProShares UltraPro S&P 500 (UPRO). We are already up big in the position.
Goldman Sachs is up to their dark ways again, this time with HCA Holdings (HCA).
You guys are awesome. I love you guys. I pound on you guys pretty hard and my lectures get pretty intense at times but it's only because I care about you making money.
He's baaaaaack.
The S&P 500 took technical damage today. I'm downgrading the S&P 500 from an uptrend to a very weak uptrend. The bulls have a very weak advantage over the bears. If we have another day or two like today, that can change very quickly as I talked about in this week's forecast video I published over the weekend.
People hate Deutsche Bank, like most banks, for their involvement in the housing crash.
It's a dangerous time right now to invest in IPOs because investment banks are trying their best to screw investors.
Guerilla Stock Trading University