I talked about the stocks like food, corn, sugar, water etc here are the chart for you to look at and reason to hold them for long term.
SPX the key level to watch is 1118 either today or next week keep this level in play.
Have a great weekend guys.
Good morning guys,
Yesterday when I came back from gym I saw the futures were taking big hit and left me wondering what’s going on? Checked CNBC and saw the news of Fed’s decision of new rates. Started browsing different sites to see what reaction out there and I simply can’t believe lot of people were calling for 30 points drop today. Only handful of people were right on the spot that the rate hike will be non-event. Right at this moment S&P futures are trading at 1103.00 only (2.50) points from yesterday’s close.
Since November 2009 I am saying this that the major correction will come around March 2010. Why? the 30yr bond auction, last 2 auction failed badly and what does that tell you? No one is interested in purchasing the US long term bonds. Now thinking like a normal person, if you are not going to purchase the bonds where will you invest your money? Banks are giving 1-2% int rate, Bonds are in the same boat, economically there is not stability and clear picture of the future, but the equities are still on rise.
Humm how about we join the party and simply invest or keep investing in equities? Check the US dollar jumped from 74 to 81 since when? November 2009. Big move in dollar still no one is interested in US dollar anymore. Fed’s rate hikes is nothing but to attract buyer for the long term bonds. At this moment the main focus for Fed is Dollar and Bond auction. We need money to invest in our economy to fight this depression storm. If we don’t have money and if we keep printing money it will make things even worse.
As I mentioned before I am requesting you guys to invest or at least think on what I have to offer you, invest in something which is a basic need for any human. Food, Water, Agriculture, Gold, Silver, Foreign currency. This is the only way you can save yourself and your family against this storm. If you want to invest in something long term invest in “white” Milk, Sugar, Salt, Cotton, Corn, hedge that with Gold and Silver and diversify with foreign currency. Like Brazil, Swiss, Euro etc.
Don’t limit yourself to futures or handful of ETFs. Let’s face the reality the economy and stock market have no relation economy can fall hard but stock market can rise for many reasons. Once again this is OPEX so I am sitting on 80% cash, my 20% includes PUTs on IWM, QQQQ, TNA, QLD and Calls of SSO.
We are dealing with one of the toughest market this world have ever seen, be smart, be patience, be quick and most importantly be ahead of your game.
I am not posting any charts today as nothing major changed. Once again the play on /ES for 1118 is still on. Don’t get carried away by others bold call, think from all corners before you anything big. check your risk with reward and always play small if you are betting on counter move.
Good luck today
cheers!!
Good morning guys,
Nothing major in market as usual OPEX week volatility. As expected the Market did rally back up. Congrats to all who went long with me via TNA, SSO, BGU & FAS. I started scaling out of my positions and started to scale into shorts from yesterday. Gold to me is ready for some retracement.
Once again /ES is at point where we need to keep an eye on it. Here’s the chart to help you understand better.
Cheers!!
INTRA-DAY CHART UPDATE:
Here’s my /ES 15 min chart to explain why this tape may rip higher.
Good Morning Gang,
Hope everyone enjoyed the yesterday’s rally. As many of you know I was long FAS and SSO with short QQQQ. I closed 50% of FAS yesterday and holding other half. Today is Friday before a long weekend, most of the time when we have long weekend short don’t feel comfortable holding their short position over the long weekend, so there may be short covering rally today.
The key level I am keeping in mind on /ES = R1 1089.25 PP = 1065 and S1 = 1052.00
Now what if we see longs taking profit as /ES is not able to cross that 1080 mark? well in that case I may simply close my FAS position and hold the QQQQ short and keep SSO long for hedge.
Some interesting charts to look at today.
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Good Morning gang,
I hope everyone enjoyed the Super Bowl and the great play by Saints (sorry if you are colts fan) but the win was well deserved. Anyways, Here are the charts you should be looking at.
The market gave us a nice down move but it’s not over yet, we are likely to get a bounce here as we are approaching the OPEX week. A healthy bounce is needed for further downside as we always have to keep in mind that Drop comes in Water fall style and Reversal comes in V shape. We want market to gradually get back to a level from where we can have another waterfall and not over extend the short that we may experience a sharp reversal.
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As you can see that shorts are covering and buyers are stepping in, we could get some bounce here If SPX gets boost above 1070 we could see a nice bounce at most stops are around 1070 area. I received few emails asking me how am I playing this moves and my answer was simple by Iron Condors. My over all outlook on economy is bearish but that doesn’t mean I have to short the market. From history we only get crash once in a decade but we do get range trading either to the upside or downside. To play the range there is no other instrument than Iron Condor. I am also trading for long term (2-4yrs) target play on longs and they are mostly basic commodities. All the basic human needs which are in color white will get expensive. Milk, Eggs, Sugar, Rice, food etc. I am building a portfolio where I am going to hold all these items for at least 3-5yrs and keep playing options on ETFs like SPY, QID, SSO, TWM, SKF etc.
I will be doing a live trading next week mostly on Thursday or Friday, so make sure you give me your stock picks and I will try to cover that.
Cheers!!
Hi guys,
Here’s a new chart of ES will post other charts later on. but at this level if ES is not able to hold we are in for a nice drop all the way to 1040-1020 area.
I will post all index chart tonight stay tuned and enjoy this drop.
INTRA-DAY UPDATE
$SOX broke a long term trendline next support should come around 320-315 if we break that support and close below it we can drop all the way to 200 SMA and find some support around 301 area.
Here’s $RUT chart which is also giving us a support around 600-605 area.
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Good morning gang,
Market is getting some support at current levels, I am expecting SPX to bounce from these level and next resistance is around 1110-1115. Following is the chart. My portfolio is consist of AAPL, SPY and IWM Iron condor. I am enjoying it as market is yet to decide the clear direction.
I will keep playing with Wide wing Iron condor on major ETFs till we get the clear direction.
Enjoy the chart will keep you guys posted.
P.S. I went long AMZN around 119 area and loving it.
Good morning gang,
I know I know I missed the drop but not really, As I posted on twitter I went short on last Friday, Closed 25% positions on 20th and another 40% yesterday just holding 35% now Here are the charts and reasons why I am trimming my shorts. Following charts you will see $RUT is very close to its support so don’t expect much if market opens lower and starts going sideways, I am expecting DOJI on most index.
DOW is right at the trendline and finding support if we don’t break the trendline and close below it then it will be sideways with possible gap up on Monday.
ES had huge volume yesterday and looking back on the chart every time we get this type of sell off with high volume we get doji and start heading back up with low volume.
Now I am not saying we are done going down or up, but we are in the air so it’s better to take profit and wait for another opportunity. Don’t expect big moves or don’t try to be hero to catch the top and bottoms. Just go with the flows guys. That’s the only way to make profit in this market.
I am extremely busy with different stuffs so not able to give you the intra-day updates but will keep you guys posted. I will be providing you with the intra-day updates once I am done with my work.
Good Morning Gang,
Most people wondering why are we rallying? We got some bad economic news. Due to simply one good news, ECB leave rate at 1%, this is a very important news for equities. No rate hikes means bad for dollar and good for bulls. Thin volume or not this market is simply going to go higher. Remember March 2009 is when we printed the lows and all the bulls will hold on to their longs till March 2010. Many times I have told you guys that don’t expect big down moves in the market till March 2010. It’s all about money and power. Currently the flow in equities is same as last yr. No one knows anything, but I have a feeling we will see big swings in late March 2010 or early April.
USD will get stronger or hold it’s current level till March 2010. Profit taking will come in March 2010 with strong rally in USD, simply due to long term bond auction. When the money flow starts into Bonds that’s when equities will see some decent pull back. I suggest everyone to stay on sideline or keep it very small. This is the time to control your emotions to short and trying to pick top. One of the reason you are looking at no trades from me. Why I am on sideline, with VIX at 16-17 area options will get hit big time. The only thing worth right now is Iron Condor or sell calls and puts way out of the money to collect premium. This is the time to be on sideline. I can’t stress enough, I know it’s not easy but don’t forget the rule number 1 limit your loss and preserve your capital.
Today could be a trend day if we put new higher after 10:30 AM if not we can expect new lows for the day.
Keep it small gang,
Cheers!!
Good evening gang,
As you all know we had nice down day today but wasn’t exciting at all. SPX futures were trading around 1132 early in the morning and we didn’t get any exciting move down today either. Following are the charts to show you what are the targets and price level to watch on SPX futures.
The most important thing we need to keep in mind is if there is any kind of indication that the Fed is not going to raise interest rate in near future then it’s a very good news for Bulls. The market will keep pushing higher on that note. With the bad UE number last week everyone was expecting a big down move but instead we got new highs, the reason was with UE unchanged at 10% FED won’t raise any interest rate which is good for Wall St. and it will keep pushing new highs until we are going to experience some bad economic news or major company disappoints on their earning expectation.
In any case here’s what you need to keep in mind. Enjoy the charts. Will give out new trades tomorrow and Update the trade page as well.
