Thursday, October 27, 2011

Waka Wakaa! (updated 8:51 am HST)

8:17 am (Hawaii) I'm not quite as excited as Fozzie Bear used to get on the Muppet Show. I'm not long, I'm not short. Just flat. All cash since yesterday. I got up an hour ago, watered my garden and had peace of mind. Then I turn on the TV and the Dow is up 330 points. HOLY SHIT.

I can't say I'm shocked that the Euro league of superheroes found some form of resolution and compromise. They were locked in a room together and to do anything but a constructive (?) plan would've unleashed the dragons and sent both Euro and US markets into a whirlpool of epic proportions. So there. The bulls win this battle. The bears lose. In a way, I lost, too, by not being long.

AAPL 405.88 +1.3%
AGQ 71.02 +11.1%
DGP 60.35 +2.8%
FAS 16.21 +15.4%
QQQ 58.93 +2.9%
SPY 128.47 +3.3%
TMV 19.62 +10.7%
TNA 52.45 +7.1%
GOOG 600.81 +2.4%
FXE 141.72 +3.2%
PNRA 136.59 +2.2%

I tossed PNRA onto my Modified Trade X list for fun since it was up huge yesterday. Add another 2.2% today and you know there are a lot of believers in this run today. More so than with AAPL or GOOG, which are sexier. For PNRA to jump after yesterday's move up is impressive.

I'm glad for my little stack of physical metal. I didn't buy more physical while gold was below $1650 and I didn't buy more silver while it was below 30. I just held. It's savings. But I didn't buy AGQ or DGP, though I'll be looking for an entry point . AGQ was available after the opening bell below 66. DGP was below 59. It's probably not too late but I'm picky at price here.

Here's a weird looking 1-min chart of DGP. It always looks sketchy when any price is capped like this to either up or down side.

DGP 1-minute
Strange but nice for bulls

FAS. I had it at 11.09 and sold twice below 11.50. The charts of FAS and FAZ, which I've been posting daily, clearly showed that FAZ was on thin ice and barely able to hold support at 42. I surmised that it might be attractive again at 35, and we have it standing at 36+. I'll wait before touching FAZ and it'll probably be a long wait. There will be fluctuations due to the nature of haughty, deceptive talk out of Euroland — any plan that involves cuts that go to 2026 is fraught with bullshit — but for the most part, the Euro is rising and so will markets.

FAS at 16.30 is near its high of the day. I'm cautious here. There's already been a selloff off the opening gap up, then a run higher. Is there another one coming in the final 90 minutes before the bell? Or will this sell off by half?

Is this another melt-up run like QE1 or QE2? The market sure feels that way. With just over 2 months left in the year, hedge funds will be working like mad to make all the easy money possible, especially since most of them are flat or negative YTD. Like a pilot fish, I must catch that free ride. It's been too hard the past month or two.

Debt Spiral (banksters) list
SCGLY 6.70 +24%
DB 47.64 +18.8%
MS 19.38 +16.9%
FAS 16.38 +16.5%
RBS 9.07 +12.6%
BBVA 9.90 +12.4%
UBS 14.14 +11.7%
NBG 0.61 +11.6%
STD 9.30 +10.7%
IRE 6.39 +10%
C 34.07 +9.4%
GS 116.11 +9.2%
BAC 7.17 +8.8%
JPM 36.94 +8%
HBC 44.98 +6.2%
AIG 26.84 +6%
WFC 27.14 +5.3%
FAZ 36.20 -16.4%

As I've penned for awhile, they simply won't let the Euro (and US) banksters fail. Period. Not for now, anyway.

Update 8:51 am Intraday double top in FAS? Glad I didn't chase at 16.50.

FAS 1-minute
Waiting this out.

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