Monday, October 17, 2011

Merkel, Sarkozy & little white lies (update 1:35 pm HST)

8:40 am (Hawaii) Starting to hate thinking about trades due to headline risk, ie political posturing, ie (necessary?) white lies about the future. So Sarkozy and Merkel say one thing publicly and fight a losing battle behind closed doors. The German people don't want to fund anybody else's party, let alone another nation's. But politics continues to move the markets. My new motto: they're all lying and the charts prove it.

SPY 15-minute, 2 week chart
Pop goes the balloon. 
Can Sarkozy/Merkel patch it again? 

FAZ daily
55 on the radar

Since my last FAZ chart, I've added a lower megaphone line to account for the new recent low sub-50. Since the downtrend of 6 down days in 7 sessions, price seems comfortable in this new range with 55 as a key level. 

Update 1:35 pm Back at the desk after doing some of my work outside (therapeutic to say the least). I bought FAZ earlier at 56.00 and sold at 56.08, them bought again at 56.35 and sold at 56.55 afterhours. Both times I used stop orders, once on the downside and the other on a potential upside. I like FAZ, obviously, but with AAPL reporting tomorrow and the potential of Goldman Sachs and Bank of America lying (again) during their earnings reports tomorrow, stay 100% cash is good enough. Besides, FAZ often works better as a day trade rather than an overnight hold. 

Looking to enter AAPL, which is at 419+ afterhours, down 0.7% today. 

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