Trade Update

Check your emails. We have completed a lot of activity today. Will advise.

I'll Be Back! (On my way)

Please check your emails. I have been traveling. I noticed that we did not miss anything in the markets. You will notice that i did recommend some action today while waiting for my return flight. I think the opportunity may be pretty good. Will advise later.....

Market Strategy Update: Stop Playing

We have reached a critical stage. The traders refer to this as a "Pull the Cord" or "Eject" stage. This does not apply to long-term investors-only short-term players. This is a fairly rare occurrence when the markets are in a state of "flux". This means that there is no trend yet established. The players are trying to decide what type of market we will be prevalent for a profitable environment. When it becomes a "50-50 Gamble"- it is better to close all positions, go to cash, and reset. It has become too risky to go long or short-as the damage could be substantial either way. A Pro plays with an edge and right now there is no legitimate edge for either camp. This is when you "stop playing"-you "eject from the game"-You "pull the cord". The risk/reward ratio is pure gambling now. We choose not to play. Let the markets reset and clear the boards. Call it a "time-out" or "break". Enjoy the time off......speak soon.

Now we know why

The market reversed course this week. News was being leaked out about The FED move coming after the market close yesterday. It is obvious that some major players received information before the general public. We could tell something was not right. Is this fair? No-this is the environment we play in. When things don't act right, there is a high probability that something is known that you don't know.

Trade Update Sent

Check Emails. Closed all positions. Reset. Stay tuned.

Breaking News! Fed raises discount rate!

25 bps to 75bps. Wow!

Strange Days

The market seems to be acting very strange this week. Technically speaking the uptrend that began last march has been broken. What is most intriguing is that the market has been getting it's spurts during very small time frames during the day. It feels very artificial. The volume seems to tick up at odd spots with no selling. Almost as if there are select "Ask" hitting. Are we being set up for the next leg down? Are we getting ready for the next leg up? Something is rotton in Denmark. Not sure if the smart money is getting or getting out. The numbers and stops seem almost to0 perfect. First the reversal at exactly 1040 SP500, The Dow closing at 9999.98, The seemingly methodical advancing to the exact next technical levels. The lack of volatility is strange...is there anybody out there? I guess the plan is to bid it up to a point that inspires volatility and actual commitment-the "all is ok" signal. Well....I don't buy it just yet. The last pull back had broken some serious uptrends and is "dead" out there. My "conspiracy theory" side thinks it was easier to prop up the markets than it was to bail out greece and other countries. The latest buying was too organized, too methodical to be an actual free-flowing market. I have seen it before (The PPT). I am going to hold the short a little longer and see what happens (or double up). If they can pull it off...then maybe I'll come back and buy.....Stranges Days Indeed!

Update MGM: Accumulation Program Suspended

I was not happy with their report. We have suspended our accumulation program and sold long positions for a small loss. Report sent to your emails. Will advise in the future.

Trade Update: " AAA3 "

Well..It seems that "AAA3" or EDZ (Triple-Short Emerging Markets ETF) is not working well right now. We are going to hold the trade as we are approaching major resistance. Our purchase price is 6.05 and we are down about 10% in it thus far. A perfect case of getting run over. The upside move in the markets caught us off guard. It was pleasant for our accumulation program in SIRI; however, our short position is getting hit hard. stay tuned......

Trade Update: "XYZ2" Closed

"XYZ2" was SIRI again. I love playing the same stocks over and over. Not bad trade..bought at .82 and we just sold at 1.13 for a 38% gain. Emails sent.....will advise. Probally sold early;however, it is now on CNBC so- We sell!

The Market Suprise

Just when everyone thinks they have the markets figured out-BOOM-it does something that totally catches most investors off guard. This is exactly what has happened the last 4 trading days. The Longs sold, The Shorts bought, and everyone lost money. It seemed perfect: Europe financials shaky, huge snow storms hitting the U.S., poor technicals, and a bearish atmosphere..then...out of the blue the markets rip to the upside leaving most wondering -why?. Sometimes the market acts in such a way to disappoint the most people. My guess is that this time program trading hit a "still" market. Dollar got dumped, commodities got bought, and the indexes got hit with massive buying. There was no real news (at least that mattered before). Where do we go from here? I have no idea. It could go either way. It is times like this that I like to wait and watch until I get "the feel" again. Stay tuned........

Rule: Don't short during olympics

Had to back off today. Good thing the long hedged the short. "AAA2" was FAZ. It hurt. Had to take a -5% loss. We are going to have to dig deep with the other positions here. Hopefully we get a chance to back away on another position. All in all-bad trading. Going to take a risk on AAA3. Lets see...stay tuned

Trade Updates

Strategy and actions have been sent. Please check your emails. We did a new buy today "AAA3". The markets seem to be churning-trying to decide which way it wants to go. This does not stop our accumulation programs. A deep understanding of your company's financials is going to be key in here. "You have got to know what its worth" . The technical traders will give us ample opportunity to gather good stocks at great prices. Stay tuned......

Laissez les bon temps rouler!

Being that it is Mardi Gras season, I thought I would get in the spirit. Looks like more of the same. We will continue to hold both our positions-one is short and one is long-until we get some definitive moves. Hopefully one can be closed before the end of the week. I am taking WallstreetRamblings on the road at the end of the week to New Orleans for Mardi Gras. "Let the Good Times Roll! and "joie de vivre". Stay tuned as we finish up the next couple days.

"AAA" closed

"AAA" was EDZ. It is a leveraged ETF that is triple-short the EEM or emerging markets index. We got in on Thursday 2/4 at 6.25 and got stopped out at 7.00 on 2/5. It was a bet on global selling of the Portugal, Spain, and Greece problems. it worked well and we may come back to it. Stay tuned.....

New Trade: Buy at open

Emails sent. We buy at open "AAA2". Will advise. Check for status.

A day off

Yesterday was Post Superbowl Monday which is a day we take off. I learned my lesson early that it is wise to plan to take the day off after The Superbowl. Congratulations to The Orleans Saints. They had a great season. (Giants fan myself). Nothing happened yesterday for us-just a watch day. I will continue to look for opportunities...stay tuned

Wow! What a crazy day...."AAA" got stopped out!

The "AAA" got stopped out at our 1st target for a great 12% gain in 24 hours. I didn't expect it to get there that quick. We will come back to it maybe next week. The S&P500 hit our 1040 target and ripped to the upside. Well-we are back in cash and looking for the next opportunity. We will probably play "AAA" again next week so I won't reveal the real ticker until we are done with it. Have a great weekend everybody......I think The Saints will win the Superbowl.

Trade Update2: "XYZ2"

Well-we wait to nibble more. It is on an accumulation program. No need to purchase more at this time. Our short "AAA" is more than covering the small loss we are taking there for now. Stay tuned and continue to hold while we wait for the next purchase target (we may have to bail if things change).

Market Update

The jobless rate unexpectedly falls to 9.7%. There is a growing concern over sovereign debt defaults overseas. This is putting pressure on the global financial system. The global markets continue to act-horrible. Fortunately, this all works out very well for our trade. The global markets continue to ignore positive news from the U.S (as does the U.S. markets). Why? The "Aircraft Carriers"-as we discussed before-are making their 180-degree turns. They are going to push the markets down until they complete their turn-no matter what the news. Once they complete their turn-we cover the short and go long. "AAA" is very well positioned for this event. Stay tuned and watch you emails for updates.

Trade Update "AAA"

We are up 9% since yesterday and it continues to look good. We will hold for now and look for 1st target price. Emails sent.....stay tuned.

A good day: The DJIA down 268 ponts!

Good? Yes-we are in cash (with a small position long as we accumulate) and a fairly large position short in "AAA". Let's hope we get some nice selling on the follow-through tomorrow. Looking to be a buyer of some positions as they are sent lower. We continue to hold the short "AAA" with a good chance to make some good money...stay tuned.

New Trade "AAA": All in

Well..I don't normally like to pile on during a big up day for the position;however, we are going to take a full position today in "AAA" and go with the trend. Took a fairly big bet. Emails have been sent.

Trade Update1: "XYZ2"

Continue to hold. Our initial nibble looks ok and it is on our "Accumulation Program". We wait to buy more. The new trade "AAA" is on our watch list. We wait for our price. Do not buy yet. Stay tuned.

Market Update

Strategy emails have been sent. The market is acting as we thought. Patience is going to be key in here. It would have been nice to have held the FAZ-got shaken out-the best play WAS to double-up. (hindsight is 20/20). The good news is that we are almost all in cash and we will continue our buy programs in small commitments at the target spots. I may decide on playing a short-if it looks good. We can do both buying and shorting by diversifying the "duration" of the trades......if you are in cash, you gotta love a good correction! Stay tuned.......

Nothing to do except wait

We don't do anything today......yet

The Most Annoying Phrase on The Street

How many times have you heard a Money Manager say " We don't time the market-we are long-term investors"? What?! What are we paying you for?! We could buy the SPY (ETF) and out-perform over 90% of the mutual funds in existence with less expenses. The best managers have exhibited some form of market timing-yes...even The Oracle. Does a good farmer plant all his/her crops at the same time? Does a good shopper buy all their goods at the same time? Does everything in this universe depend on timing? The obvious answer is YES. When I used to pick money managers for clients and my firm-if a portfolio manager ever said this......well you probably know the answer. The timing may be minutes, daily, weekly, monthly, annual, or more. Everything moves in cycles. I have a saying: If it is flat lining-it is probably dead.

Question: Why do you change you mind so often?

A reader had sent me this question today. The answer is: The market changes my mind in the short-term plays. The longer term plays have different rules. I have learned that each successful trade should act exactly like you think it should. Experience taught me that "if it don't seem right- It probably isn't"- you fold. You go into a position because you should have a pretty good feeling on how the price should act and who the players are that you are playing against. The best positions are the ones that you know where they should go and you know how they should ebb and flow. The worst positions are the ones you lose "touch" with the price movement and you get trapped. Diggin in your heels because "you know you are right" has caused the demise of many and many investors and speculators-the graves lining Wall Street are full of that mentality- so are the poker tables. There is nothing wrong with "getting shaked out"-part of the game...the market will always make you "feel stupid" from time to time. We play in a game based upon probabilities; not certainties. If the probabilities change-you react. During strong trends-I don't change my mind very often-I ride the wave. We are not in those times!

Hedge Update: Closed out FAZ

Market was pretty strong today- closed out the short near the close (FAZ) for a minuscule loss (-3%) on a very small position (18.60). The new long (accumulation) turned out pretty good so far-looking to buy more...There should still be plenty of time in here to build a bigger position in "XYZ2". Still cautious on the market-so not rushing in. 1st purchase up 2%....just a nibble in here for now....

Market Status: Upgraded

TO "Alert-Danger" FROM "Red Alert-Extreme Danger". The economic news along with the strong hold at the support levels has proven encouraging. We are not out of the woods yet; however, the environment is improving. We are even taking select long positions-stock specific-it is still a stock picker's market.

New Trade: "XYZ2"

Emails sent. Well-I couldn't resist. The price was just too compelling- I decided to "damn the torpedoes" and start an accumulation program on "XYZ2". We bought 1/2 position and look to add more. The technicals look good and I think they are doing very well-despite the economy. Still holding the FAZ (short) during the accumulation phase.

Update: The Importance of Patience

As discussed before, the importance of taking small positions (long or short) during periods of uncertain market direction. Large positions can cloud your opinion. One tends to dig in their heels. It is best to stay flexible and wait for confirmations. This brings us into the latest update:

The markets seem to holding the support levels. The financials are at the top of the resistance levels (XLF)- There still is no confirmation of a breakdown, although it is still in a precarious position. There were many upgrades in the sector today.An aggressive player would "double up" on the FAZ here. We are NOT going to do that. I am going to wait and see how it plays out-still hold our small positon in FAZ. I prefer to double up on confirmations. If we have to change sides, we dump the short and start a buy program. The loss would be negligible. Still looking for long positons and good entry points....sometimes the best thing to do is NOTHING. Like poker-we wait for position and good cards....more to come

Update

Not much happening...continue to hold...and we wait.....looking for opportunities.