Guys, I’m sorry I have to make the update quick today. My Dad had a heart attack. It’s his third. He’s had so many heart surgeries that his stents have stents. I’ve been at the hospital for awhile now. He’s doing pretty good and should be going home tomorrow.
The Mid-January Break was a bust this year. If you follow me on Twitter then you already know that my stop loss was hit today on TZA. No problem. I’ll play it again next year. Remember, it has almost a 70% success rate since 1994. That’s awesome. A gold bug said to me today, see Lance, I told you that 68.8% wasn’t a good enough percentage to bet on. Dude. If you can’t make money with a nearly 70% success rate then you’re so clueless that when you were asked the difference between roast beef and pea soup, you replied, “I can roast beef but I can’t pea soup!”
The Dow, S&P 500, Nasdaq, and Russell 2000, are all in strong uptrends! Furthermore, we have leadership coming from the Russell 2000 and Nasdaq! That’s perfect.
The TICK was over 1100 today which suggests institutional traders are buying.
Semiconductors and Networking sectors rocked!
Here’s the way I’m going to play this market. I’m in cash right now. I’ve got a bunch of longs I want to buy. If tomorrow starts off with a gap up and good buy side volume, I’ll go long these stocks. If there’s a pause or pullback, I’ll stay back in the safety of cash. The reason is that Friday is options expiration Friday and according to the Stock Trader’s Almanac January’s option expiration Friday is often a huge down day. A whopping 13 of the last 15 option expiration Fridays in January have been down. I view this Friday as a BBE (Big Bad Event) where I’d rather be on the sidelines and the safety of cash.