Thursday, February 25, 2010

SCOTTY I NEED MORE POWER

Sorry Captain .....Market looks to be forming another leg down in the premarket. If we get a big red candle then this baby has some more downside. Of course we are technically speaking and as some of you T/A boys n girls know GS can do magic to conceal their intentions and derive the most out of the actual market goal. A simple rule that I try to use is to do the opposite of what the sentiment is on the SKF board. I think GS uses the board as a core sentiment indicator (joking...kinda).

Jobless claims weekly up 22K...watta joke. Unless you are one of those families without a job. Think about it ...a lot of those souls just played by the rules...anyway gotta pay attention to the game.

Oil tanking on the dollar squeeze. Technically oil was set up for a turn BUT no courage yesterday to add to my DTO. Its just too dangerous here. I will play the small shares I have. If they strap a red candle close on it then I will gap trade it tiny.

ALU is a longer term 6-18 month hold for those that are not traders. Buy some now and double down at 2.

Miners again...should take a beating at least you can hope.....make sure you remain vigilant. Watch for signs of gold bottom. Joe believes you may see dollar up days and gold price not participating on the downside as a sign gold has found its bottom miners same.

http://news.goldseek.com/RickAckerman/1266994800.php

UPDATE: This is the link about China buying Gold from IMF, thanks joe:

http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0

31 comments:

  1. Don't forget to add Uncle Bennie as a joke to! TXB

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  2. Analyze,

    Nice gap at the open and look at the gap PBR and SGY gave you,heheee!

    joe

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  3. All,

    I like days like today, for those of you who play gaps, it's ideal trading, market gives you a gap down at the open and MMs fill the gap, especially in oil and natural gas stocks these days like SGY and PBR.

    joe

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  4. joe you are right pbr sgy is a mthrfker on that gap.......

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  5. Joe what do you look for when entering a gap, a certain time after open, or just charts?
    Are you able to identify the low of day after the open?

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  6. CBS,

    I look at the overall market at the open, how low the open is and ,the charts AND the VOLUME. No one can exact time or price the low, but experienced traders see the gap and whether there is enough volume behind it and they react. Also, if you noticed, I lock in my focus on individual stocks whom I have been following for quite a while and know the patterns after a while.

    joe

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  7. Oh, what do you use for looking at overall market?
    DOW,SP,NAS?

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  8. CBS,

    I stayed away so far from DTO ( double short oil) today, the reason being it already opened up huge and unless if you bought it at the close yesterday WHICH I do not do in this current environment, the gap after seeing what market gave me at open is not worth the risk for me in DTO TODAY.

    joe

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  9. I use S&P, Dollar index, oil and natural gas prices when I trade oil stocks. If I am trading gold miners then the same concept except replace oil price with gold price. I focus mainly on commodity trading because I have been doing it for 35 yrs and I am comfortable with it. When it comes to tech stocks, I only get in if I want to swing trade or buy and hold for a while depending on the price, environment,,etc.

    joe

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  10. Miners had nice gap today and are benefitting from the GS sector rotating that analyze referred to previously....Miners not benefitting from high volume so caution on making a confirmational move here.......but i did trade the gap on ego

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  11. kli,

    There you go, your instinct and reaction is getting better, this is a good test of how to scalp INSIDE THE KILLING ZONE. As you get more experienced, you can play with more shares. In this current market, jackals smell blood.

    joe

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  12. Joe, yes, I was on SGY due to your mention yesterday - bingo. -Analyze.

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  13. Miners looking strong today. I see that as an indication of where PMs are heading in the not-so-distant future. Gold and silver have held relatively well during this downdraft and dollar strengthening vs other currencies. Lower commercial shorts on PMs via COT also bullish.

    -C

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  14. kli,

    Nice turn around for SLW today, Gold is up as well. Analyze, add SLW to the list of your daily targets, volume picking up.

    joe

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  15. All,

    Kli & I had a conversation last night in regard to dollar and Gold, kli mentioned that although dollar has had relative strength, Gold has held well and wanted to know the reason. It's because any time GS wants to hammer gold, chinese and other foriegn investors pick it up. China is buying the Gold IMF is selling. It's a thug of war out there. Fun and games.

    joe

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  16. Some one asked me what's the maximum price drop I see in price of physical Gold if we go into severe DEFLATION, the answer is the max pain is 30% from the top hit last yr ( 1227). So far Gold has corrected 15% from the top and went up from there( below 1050).

    joe

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  17. and if you believe that true deflation is coming then you WANT to be in physical gold.

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  18. Joe, thanks for the heads up on SLW. I may switch from the run and gun options trading to standard trading for awhile. May end up saving me from an aneursym at some point as well. - Analyze.

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  19. For gap and pm traders don't forget Joe's favorite => SWC .

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  20. Red,

    I have not sold my SGY buy this morning at 15.72 yet,heheeeee!

    joe

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  21. Red,

    SWC is a beauty, the gaps are real nice, I have had lots of fun with that one this yr, gap trader's HEAVEN.

    joe

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  22. I'm not chasing the GS pump here, some of those are just gap fills. Going long just because we recovered downside here is not a reason in my mind to naively go long and hold anything. I'll play what comes tomorrow and not hold anything here. - Analyze.

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  23. All,

    This is the link to china buying Gold from IMF:

    http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0

    joe

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  24. Analyze,

    Always take profit and live to fight another day.

    joe

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  25. Alternative to GDXJ?

    Aberdeen International (AAB) — Aberdeen is a great way to own the junior mining sector without having to take on the risk of owning individual juniors. The company uses its management connections and know-how in the mining industry to get in on quality deals and quality mines.

    Trades on the toronto exchange.

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  26. AAB illiquid, look what it did compared to single miner issues today.

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  27. I noticed twinky or whatever the ID is listing people from this site lol, question, who is the Colonel that is being referred to? Most of the people are listed by userid except for that particular one.

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  28. Twinky is refering to following colonel:

    http://2.bp.blogspot.com/_zfmh-5Q5Ltw/S10tD9J_QfI/AAAAAAAABSo/UMcgcgD3ARE/s400/colonel-sanders_kfc.jpg

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  29. Lol. Someday we will post the 11 herbs and spices here.

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