Tuesday, June 21, 2011

Hitting for power

6:59 am (Hawaii) Just got up to another cool morning in the islands, a nice 73 degrees, partly cloudy, low humidity. The market is where it's hot. Dow up 91.96 (+0.78%), Nas up 47.31 (+1.8%), S&P +14.60 (+1.1%).

Silver is on fire and dominating the top of my Metals list, which is 79% green, 19% red. Unlike other up days, volume is huge so far, which has me intrigued.

AG 17.85, +7.1%
SVM 9.16, +6.9%
EXK 8.37, +6.5%
PAAS 30.36, +6.3%
NUGT 28.73, +5.5%
AVL 6.56, +5%
XG 11.99, +4.9%
SLW 32.57, +4.5%
EGO 13.99, +4%
SIL 23.46, +4%
GOLD 77.69, +3.5%
GDXJ 33.67, +3.16%

All of these upside plays are close to yesterday's volume or, like EXK and XG, have already surpassed it. How is this possible? US Dollar down, Euro up, Greece going through the formalities after the closing bell. Bernanke to speak tomorrow. Even AAPL is up 2.8% to 324.27.

Is it just about Greece and the Euro? I'd say it was a weak dead-cat bounce, but on this kind of volume? The finnies are up big. NBG (+7.4%), BBVA (+2.6%), STD (+2.4%), C (+1.8%), BAC (+1.1%), GS (+1%), GS (+1%), JPM (+0.6%) all up. FAZ down 2.9%.

Whatever the reason, EXK once again bounced off the 7.50-7.60 area. This is no place to chase here.

As for rare earths, AVL is hot on fair volume, MCP is up 1.3% to 53.11 on tiny volume, and REE is up 2% to 10.36, also on very small volume. They had their big run yesterday, but today isn't all bad at all. Looking forward, I'm leaning more toward trading in rare earths and/or holding a small long-term position. Otherwise, I'm still 90% cash, haven't made a trade in nearly two weeks. The game plan was to wait until tomorrow for a signal in either direction and I'm content waiting this out.

My Regular watch list is 87% green, 13% red. The big boys like AAPL, DIS, GOOG, NFLX are up, but on low volume. The smaller players like LULU are up on huge volume (+5%).

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