Playing "The Matrix"

The Legends. The behind the curtain players. These are not typically in the media discussing their plays (they control most media). The Legends know that they do not ever disclose their real intentions, unless it benefits them. They do not write books (maybe for posterity), they do not sell trading programs, they do not disclose their real secrets (although you can ascertain hints). I figure, they influence or control north of 7 trillion dollars in market money-Forex included. I call them- The Matrix. They are the "Elephants", the "Huge Stacks", the "Whales". Exceptional players. No reason to name names-the "smart money" knows them. Their very size and power is also their weakness. It takes a long time to turn "the positions" around and change direction. I compare it to doing a 180- degree turn in an aircraft carrier. You want to always be aware of what they are thinking. Even if you are right;until they change direction, they can wipe you out -ride with them, accumulate small against them, and press when they make their move. ...think of their next move..I found that they are logical and have been playing the same way for a hundred years plus. They are very smart and clandestine...think like them...move faster..catch their wake for a nice "Rush".....more to come

That's a wrap

I'm outta here. Have a great weekend everybody! Continue to hold the FAZ. The question is: Do we buy more?.........let's prepare for the next move-like chess..stay a few steps ahead. Elvis has left the building!..."Poof"

Word on The Street

CASH. We made some good moves and got lucky too during this correction. The only thing we are holding now is a short (FAZ). Not a huge position-you don't need much if a major move comes. We had a great 1st month of the year. No reason to pat ourselves on the back, we have to stay focused. Let's sit back and watch our last position play out. Stay in cash and wait. Foggy markets rip both the bulls and bears. So we wait................I prefer to play poker during these times-keeps you sharp.

"XYZ" closed at .87

"XYZ" was SIRI. We sold today for a 24% gain. We will be back.

Question: Why do you use "ABC", "XYZ", etc,,

I use them because some viewers are paying clients and it would not be fair if other viewers received free advice. Once the trade is "released" , I publish the results. If you would like to know what the mystery trades are, send me an email-we will talk. Thanks.

Correction Numbers--personal opinion

We have not totally broken down;however, many have asked me where we would settle if a breakdown is confirmed-the numbers are not pretty. The first targets would be Dow 9500 (DIA 95) and S&P500 980 (SPY 98). That is about another 6% from here on Dow or about 12% from high on Jan 19. The S&P500 would be another 9% from here or about 15% from high on Jan 19th. These would probally be intra-day numbers. Not exact-approximates. This would be an ordinary and expected movement given the run-up in the markets since the March 09 lows. No biggie-but scary.I put the probability at >60%. We have accumulated some shorts- (FAZ) and are looking to close out the last long position (even though it is extremely strong)-we can replay it. I prefer not to play long in markets like this. Either step aside or short (if you are brave)...The market is still on my "RED ALERT" status.

Trade Update: Final Hour

Emails sent. TXT closed out at 19.85. Just not acting right...should have taken the open..oh well..small loss: -4%. Holding other positions. Other long position up 9.5% "XYZ"..continue to hold. The Hedge (FAZ) is still on...stay tuned...

Noon update

The word is volatile! Our positions are doing well considering the market is down 150 points! "XYZ" is up 7%, TXT is down 7%, and FAZ is up 4.5%. today. Lets see how it plays out...stay tuned..emails sent

Trade Updates

"ABC" company was TXT. The earnings were good;however, they had some special charges. A little disappointed by not getting the "run" today. It is still pretty strong considering. We are still going to hold it for now. Bought at 20.73. "XYZ" company is still going Strong- we are up 8.5% so far in a down market and it continues to look great. The "Hedge" FAZ (Triple short financials) is keeping us in the game. We are going to continue to hold it for insurance. ..stay tuned for updates...market moving fast. Check you emails!

I couldn't help it...

I decided to buy a hedge at the close. The chance at a break down in financials seems fairly decent.Lets roll the dice. Picked up FAZ (Triple short the XLF basically). Not a big position-bought at 19.18. We have two long positions that are positive, and figured I would protect some with The President's speech tonight. I got a 23 target on it with fairly tight stops.

Trade Update ABC and XYZ

Although the market is on red alert, we are going to continue to hold our long positions in these two. They are acting very well and we will see the earnings report before the bell tommorrow for one. Boeing's report should bode well. The markets are not a confirmed break-down. We will continue to play out our remaining positions for now.

How to play a "Red Alert"

I have received some emails asking how to play a "Red Alert". There are many different ways. I prefer to play ETF's and Leveraged ETF's because I don't have to be company specific. Some of my favorites are: FAZ (Triple-short the financials), DXD (Double-short the DJIA), SDS (Double-short the S&P500). These instruments should be used for short-term trading and not long-term positions because they move differently than expected. We can discuss later....btw- I am not shorting..just stepping aside.

RED ALERT

The stock market is at a precipice. It is very dangerous to initiate new long positions here. The market is now running on almost 60% volume (by some estimates) by algorithmic trading. These black boxes are computer decisions to buy/sell in large quantities based upon defined formulas for buying or selling. We are approaching and flat-lining at huge technical supports, the politics out of Washington are now headwinds, the markets feel surprisingly "dead", investors are piling into short-term t-bills, and good earnings news is hit with slack price movement. 1040 on S&P500 looks more likely than not. .....I am concerned about computer selling. Stay tuned.....

CNO Closed..Market update

Closed out at 4.80 for a 4% loss. Not a biggie-the position was very small.Why? Things are getting increasingly murky and CNO hit our stop. I saw today that the 1-month T-Bill rate hit negative for the first time since March 26, 2009. That means people would rather get a negative return and seek safety than invest in other options. Not good. Houston we have a problem. It is more important to protect your "stack" than it is to try to advance during foggy periods. The markets are flirting with huge support and a break down would cause severe problems. Going to play-out the other positions with a keen eye and tight stops...and continue to build cash in case we get a massive sell-off. The market is on "Red Alert".

Position Updates

Our positions are holding up well. "XYZ" is strong today and looks to be breaking out soon. CNO is still cautious-but looking ok. The new trade "ABC" reports this Thursday and I have been waiting for this price for two weeks. Word is they are going to be good numbers. Emails and updates have been sent.

Trade of the Week

We may have a runner here. I was going to sit out and hold current positions;however, there is a company reporting this week that should post good numbers and I expect the stock to get a pop. They report this Thurs. 28th. Emails have been sent.

The Word on the street is.....

Cash. Market is murky at best here. It seems the buying excitement has faded and there is a sense of helplessness. Not much happening, which makes it vulnerable to a sell-off. Not good idea to short either. Cash is the word. Going to hold current positions;however, keeping 70% in cash. Do you hear the crickets?

Got shaken out...back in

Wow...the volatility has really increased! Looks like I sold FITB early today. I thought the 12 price was good..it went to 12.60 plus. A profit is a profit. I should be happy. After re-thinking..I decided to go back into CNO at 5. We are going to try to play the huge support here and see if we cant get a bounce against the tide...It is a fearful trade;however, I am going to use that fear...turn off the news and play with what my computer program is telling me...ignore emotion...We will see what happens.

FITB Closed

Closed position at 12. The market facing strong resistance. Figured our 7% gain was good here. There are market problems. Hold the cash from FITB and wait for new advisory.

Houston: Do we have a problem?

The answer may be yes. The financials did not act well at all. Sometimes unexpected events come into the market. This time it was a President. Right or wrong, the effect was that the financial institutions and investors responded by voting "No" with the selling of stock. It may be just that the VIX was getting down too low and most are cautious after a huge run. We are not going to sell at the open because our positions are strong and not a good idea to sell on a continuation with the lemmings. Going to keep a keen eye though...The head winds are strong and even the best boats go down with the tide. Stay tuned....

Today's Action: FITB and others.

The events unfolding are great for our positions. Expect upgrades to the regional banks. The FITB new targets have been sent. Check emails. Company "XYZ" can be bought aggressively today. Holding well-word is their numbers are going to be great. Continue to avoid the big banks. There are going to be lots of opportunities out there in different sectors as money is rotated. Continue to hold off on the casinos for now. Avoid the media mumble jumble and opinions-we stay with our indicators...will get more "word on the street"...will advise.

FITB Update6: Earnings were great

Continue to hold. Target 1 should be hit this morning. I am going to go through the numbers-will advise. Email updates have been sent. Look for new info.

Swap complete

CNO cash swapped into "XYZ". Will advise updates on new trade as they occur. Check emails for details.

CNO Closed

Closed CNO today for 6% gain. No danger-just too many other opportunities. Will deploy cash elsewhere. Will advise.

FITB Update5

Updates and emails have been sent. Stay posted for further advisory.