Tuesday, May 31, 2011

AND NOW THE PUMP...Operation TWIST

What better reason to rip a market higher than a near default in Greece....or an unexpected recession in Denmark. Perfectly timed to bring about the short positionss for a nice slaughter on a beautiful Monday morning. This is one of the most treacherous markets to trade but if you understand who runs it and how they do it then the surprises are more expected than not.

Of course their nemesis gold and silver are struggling today, but the anti-ponzi game will eventually succeed....maybe just not a monster day this day. Miners should gain some traction with general equities but the real action should be in the energy plays today. HNR ATPG SGY WPRT NBR.

Watching the movement in crude oil is like watching a slow train wreck. This economy cannot sustain this price. I drew some channel lines this weekend and came up with oil crossin over 120...If it does we are all toast this year. My guess is they will not let it go there but they are fighting a global liquidity crisis and could actually fail at preventing that climb. Just unbelievable that we could sustain that price.

Only a postulation but right now the chop and sideways action predicted through June is looking good. I don't trust any of it but I have to play the charts and the miners look good in the intermediate term ...short term we could get a few days of sideways action on them but that would be your chance to accumulate a small ammount. Remember as usual we have a risk of another leg down on them but the charts say they go higher. With POMO for another month it certainly could be. Watch EXK AG SSRI SLW EGO GFI etc. EGO and GFI have the least downside risk. gl

"Whoever controls the volume of money in our country is absolute master of all industry and commerce...and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation or depression originate."
- James Garfield


http://www.zerohedge.com/article/preparation-feds-last-doubling-down-david-rosenberg-believes-qe3-will-be-nothing-short-opera


Operation TWIST


46 comments:

  1. OPTR is going to be interesting today, the FDA approval they received on Friday was all over the news.

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  2. Let's see what PURE does this week!

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  3. http://finance.yahoo.com/news/Optimer-recommended-Summer-theflyonthewall-2363585738.html?x=0&.v=1

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  4. This is hilarious...one bad data point after another and the market's on fire haha! Just came out with consumer confidence ~60.8 or so, lowest in months, market shrugs it off like a weighlifter on steroids and keeps on truckin!

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  5. Kli, Joe

    Thank you for recommending ASTM. I sold today for a profit of +40%.

    Carol

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  6. remember to unclick the "keep me signed in box" if you are having problems making comments.....

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  7. kli joe
    jumped into pure lets see where she goes

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  8. VRML and AEZS look great today....WOW Gettysburg on History channel was Awesome!!!Hope everyone got some well deserved rest....Listening to Ron Paul this morning he knows what is going on...Mentioned the Miltary Industrial Complex on CNBS this am....

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  9. Who is in CSUN? Time for short squeeze, this one has been taken to the woodshed.

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  10. Kli & Joe I pick up PURE and some more GFRE today . I set a price on OPTR, so far did not get. Thanks JIM

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  11. Looks like LDK is being accumulated in this 7.50-ish range. Other than the rise this am, most of the time it is bouncing around 7.50.

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  12. kli I have again posted, then it is gone

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  13. congrats carol.....Picked up small CSUN

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  14. Alright Joe I'll take a nibble on CSUN here, I do always regret not looking into these dangerous-looking picks of yours.

    Anyway solar should be due for a run on this new round of anti-nuclear sentiment whether it's rational or not.

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  15. Morla,

    Did you buy OPTR at 13.70 today when I posted it, heheeeeeeee!

    P.S.

    None of you bought SQNS at $11? Heeeeeeeeeeee!

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  16. playin in the great casino is for the killer whales.....Joe's point is that even if someone tells retail (us) how to make money they still won't......they listen to the disinformation that Wall Street puts out

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  17. NO fear.......you gotta go against the crowd....they push you out take your money then rip it up.....OPTR will be one that I HOPE they push out the weak hands in the next few days.....

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  18. What kli means in regard to playin in the great casino belongs to killer whales, this is what he means:

    http://www.youtube.com/watch?v=u70GP8K_DO8&feature=related

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  19. I love Joe's calls. I don't follow them blindly. This means I miss a bunch. I try to understand them and learn from them so that I can repeat them on my own. It is tough, as I have a hard time figuring out when I might be chasing.
    I got OPTR a month ago at about 12.30. I sold at 14 before it dove and did not look back.
    I missed LDK. I liked the set up, but thought I could get it cheaper.

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  20. Agreeing with Ken. Important to know we're accountable for our own decisions - and need to wisely choose whose sandbox we want to play in.

    Picked up OPTR at a lucky spot and sold too early in AH last week ... added a smaller position but feeling good and will sleep tight :)

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  21. wolfman,

    It's very important that you are comfortable with the decisions you make and I completely agree that each person is accountable for their own trades. I hope you all make money, how ever kli is a different story, he has a deeper pocket than most here and therfore if he makes a bone headed mistake then I enjoy taking him to the cleaners and I sleep well at night about that one, heheeeeee!

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  22. I should follow Joe's calls blindly haha. When we set foot in the casino we decide that we can afford to lose the money.. If something seems to be working well it's not much more foolish to put money there "blindly" than it is to be trading stocks in the first place.

    Anyway I generally don't walk the talk of that last paragraph, but today I've made small buys of CSUN and, against my better judgment (my better judgment is overrated anyway), PURE. I hate Chinese stocks and biotechs so I doubt they'll be long-term positions, but like I say this is a casino so I'm psychologically ready for short-term chop.

    Got no OPTR :) If that was a shakeout on the 27th it sure was a brutal one. Only have so much money for these small risky positions, I'll keep an eye on it though.

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  23. Morla,

    You are already aware of not gambling what you can not afford to lose, having said that do not hate any sector or stock since that bias will stop you from making some coin, if the flow of money is in particular stock within any sector then that's where you play, good stock is the one that makes you money and bad one is the one loses you some coin regardless of the sector. I personally like volatile stocks regardless of the sector since that's where as a trader I can make some coin. If a sector is beaten down and money starts flowing in it then I try to get in and do not care whether they sell coffee, toys, pharms or what have you. Think mathematics and risk/reward. The whole game is rigged anyway.

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  24. Thanks for the trading philosophy lesson Joe, Chinese stocks in the past have worried me because so many small companies over there turn out to be phony/book-cookers.

    Then again I don't know if the U.S. way is any better, instead of 100 small scam companies we have a handful of ENORMOUS scam companies that could bring down the entire house. I know ideology will kill us in this market and I'm working to get past these concerns.

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  25. Morla,

    The trend as a trader I have noticed in small-cap chinese stocks even if they turn out to have accounting problems and ultimately get delisted is that when the INITIAL hard take down has occured and by that I mean stock has lost 50% to 75% from the high, nice powerful short squeeze of 20% to some cases 100% from the low happens before they resume downward trend and if proven to be a scam get delisted, so these stocks give you some time to make money. It's important to study the recent price trend history of the particular stock you are trying to make some coin from. Stocks like GFRE, LLEN, CCME, UTA, PUDA were result of reverse mergers which is how they got listed in NASDAQ. CSUN was an IPO and not reverse merger, my point is that when I trade I also pay attention to smallest details before I take a risk.

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  26. Speaking of Chinese stocks, did anyone follow what went on today with LLEN. A contributor to seeking alpha (last name Stackhouse) published an article about accounting fraud in llen, and even went so far as to write that he intended to enter a short position! He stated his article was just the first in a series that he was to publish about llen. He has now (on his website Tottalyinvested.com) basically apologize, and claims he never intended to short the stock. He also will not be publishing the remaining articles on llen accounting. I'm surprised seeking alpha allowed the article to be published in the first place. I smell a lawsuit.

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  27. Ryan,

    Seeking Alpha is a shell for hedge funds to manipulate the stock prices in both side of the coin and in the case of small-cap chinese stocks make sure retail traders puke their holdings. The reason they have more success with it than other sectors is due to the fact that some small-cap chinese stocks actually turned out to be scams and an average trader will not know which one is legit and which one is not.

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  28. In the case of LLEN, the legitimacy of the accounting is 50/50 and some say it's legit because the CEO is an American and company's headquarters are in seattle eventhough it's a chinese business and their product is in China. My response to that is, the odds are the same regardless of whether it's an American CEO doing business in China or chinese CEO headquartered in China. It all comes down to AUDITs eventually and the legitimacy of the auditor which means accuracy of 10Qs and 10Ks. LLEN was an excellent trade from 4.60 to $7 after the initial hard take down of the stock, now it's 50/50 as far as what happens.

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  29. Thanks for the response Joe. I actually bought llen today at 5.37. I will see how it goes. I can sit on it if I have to for a while. These Chinese stocks are volatile. Definitely have to have no emotions when playing with these. If I'm wrong I'm wrong and if I'm right, so what, I just move on to my next trade either way. I'm just a newbie but learning.

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  30. Operation Twist! YaaaaHOOOOO!
    3 percent mortgages for all! then 2%.

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  31. thnx sean..... I got it posted

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  32. For some reason I can no longer explain I was reminded of the Book of Five Rings..

    "The Gaze in Strategy

    The gaze should be large and broad. This is the twofold gaze "Perception and Sight". Perception is strong and sight week.

    In strategy it is important to see distant things as if they were close and to take a distanced view of close things. It is important in strategy to know the enemy's sword and not to be distracted by insignificant movements of his sword. You must study this. The gaze is the same for single combat and for large-scale strategy.

    It is necessary in strategy to be able to look to both sides without moving the eyeballs. You cannot master this ability quickly. Learn what is written here; use this gaze in everyday life and do not vary it whatever happens."

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  33. not to be distracted by insignificant movements of his sword

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  34. I think perhaps my "distanced view of close things" is lacking. While the specifics of CSUN seem like they shouldn't matter over a short time horizon like mine, they do matter to many of the people making the decisions that move the price in the first place.

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  35. It's been over a decade since I last read it, but I feel I can recommend it. I never got the feeling that much was lost in the translation.

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  36. Morla.....you cannot play stocks like CSUN if you do not have confidence in the underlying fundamental story. That is the type of trader you are....there are plenty of stocks that may not give you the charge but at least you can accept the risk better.....they will shake you out

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  37. I am more confident in energy and PM miners than biotechs and Chinese......I know my weaknesses and limitations.......so does the ponzi...

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  38. My CSUN move was more about Joe than it was about China. And hey CSUN is energy as well as Chinese. I'm holding the same positions in GORO, SSRI, and GRZZX I had a month ago, but look man the cash portion is getting restless.

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  39. If we get a new high in miners during the next month without a pullback I'll be surprised......but my charts say we see further upside for the next 3 weeks so I'm in......

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  40. So what if GORO is no better than cash the last 6 months, I've held cash too so at least it's consistent. Safe, you might say.

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  41. Not like GRZZX, which has only EVER lost me money, that one is only there to put under my pillow at night. It bleeds slowly and lets me sleep very well with it's presence. Hey, fire insurance is usually a net loss too.

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