SPY Chart (April 30, 2009)

It does help to know the key resistance levels above us. This market is quite ready to fly if the Stress Test final obstacle gets out of the way.

Targets like 90 - 91 on the SPY chart is quite possible. You can see how much wiggle room there is between 87 - 90. Personally, I would not enter shorts overnight...Why take that risk...?


Come OpEx...the suprise is for a retracement to about 85-86. But I doubt it considering the amount of put options we have on the SPY.....MMs will lose a lot of money if that happens.

Crying heals the soul

I know that some bears have lost a lot of money shorting the S&P500 from 840. Anyway that is besides the point....

I have a music video to share with you, the first time I saw this video...I couldn't understand a damn thing that this guy is singing...but the drama is the sad part. Then I found this translated version....

See if this can help you shed a tear or two.

Restaurants Pullback (April 30, 2009)

I have been dreaming for a pullback for Restaurant stocks.....the Swine Flu did the trick. Here are some shorting opportunities for a short term play.

DRI has outperformed in their earnings, right now I am watching this for a some more downside.

CMG...needless to say....watching this for some more downside to 77. Support is at 80.31

Some thoughts for coming days (April 30, 2009)

AEM (beat estimates), ABX (missed estimates)

The key event in the coming week is the Stress Test Results, personally I would not go short ..... but it is different from committing to any long positions. However, the surprise is...what if the stress test results are not as bad as expected....? Then the markets could start rallying like mad again.

The market will most likely go higher tomorrow due to some finishing touches to the Month end window dressing.

As mentioned, I like AMZN for a possible reversal play from tomorrow onwards.
AMZN has recently been upgraded and was in the midst of correcting an overbought condition.





As for the SPY, there remains to be some uncertainty in regards to the financials. I do not expect a major selloff....but I think financials could continue trading sideways with the exception of GS. Keep on observing the channel.

Crystal Clear SPY chart (April 29, 2009)

What else do I need to say...? What does this chart tell ya...?

Swine Flu Plays (April 27, 2009)

Emini S&P is not making the Swine Flu outbreak a really big deal yet....

Some media reported a "Dive" in the Futures....don't make me laugh....

This just shows how much this market wants to be around these levels. I am approaching the market this morning with a Neutral bias....

Watching these stocks, hopefully the market will not cheat by pricing in the news by gapping first thing in the morning.....
Bonds - TLT
travel - CAL, UNP, BNI
fertilizer - MOS, POT
health - Should go up
Crude Oil - Should come down

Strategy for Gold (April 26, 2009)

These are the miners that I will be watching in the coming weeks. Note that ABX, AEM, NEM is reporting earnings next week.

I have no comments on their earnings....but watch out for some agressive buying on dips.

Earnings dates:
ABX - 29/04/2009
AEM - 29/04/2009
GG - 7/5/2009
GOLD -7/05/2009
NEM - 30/04/2009
RGLD - 7/05/2009

GLD could hit 91.38 before we see any pullbacks.


If you wanna play it safe, I recommend GDX if you wish to go long on gold miners. There will be some minor pullbacks for a better entry......but you will never know whether these bulls wanna continue pushing prices up like what happened to SPY in March.

Very Possible Scenario (April 24, 2009)

I hope you ultra bears and super bulls have finally woken up. From the recent heavy volume selling as we approach the top of the range....there is quite a high chance that the market will move sideways. It blends quite well with the economic scenario because companies need capital the invisible hand could make that happen by maintaining the market at current levels.

Just ask yourselves.....why the need to drop from here...? As long as this market does not go too high...our desperate friends up there will not get their chance to sell their shares at the best price.

However, once this market is ready to push higher I do see that we could be heading to at least 89.13 or higher.

Head and Shoulders (23 April, 2009)

A head and shoulders price pattern is now visible on the charts. Frankly, I have never trusted any price pattern...but the point I am trying to illustrate here is the potential levels for SPY in the event of a descend.

There are several outstanding events on the calendar such as the Uptick Rule and Stress Test Results. So I am expecting some potential sideways action.

My advice to you is to follow the flow of the market and not place yourself in any disadvantage by getting overly bearish or bullish. Technically the market has not broken any key support levels...so I am still Neutral on the market despite some heavy selling volume today.

As for any upside targets in the event of a big gap higher...you can refer to my previous posts.



Key earnings I am watching for tomorrow are : AMZN, AXP, BNI, COP, NUE, NFLX, RTN, UPS, UNP

Strategy moving forward (April 22, 2009)

I still hear a lot of super bearish views about the market....did this people just wake up from a dream or what? The reality is...it is better not to try to predict the market.

You need to ask yourselves, why did the market have this massive rally up to this point...? Apparently...there are some people who knows something about the market that you don't.

Let me repeat....any pullbacks are a "Bear Trap" until the Technicals say so.

Do you you know what a Golden Cross is? Go check it out yourself...some little homework for you.

For the next few weeks, I expect sideways action until the rally is ready to continue. When it does, I suspect that there will be a big gap up to scare the hell out of the shorts. Occasionally, the market will act weak to draw in the bears....this is only going to gather more strength on any effort to push the market up later on.

On the technical side, only a break below SPY - 81.39 will be considered ultra bearish. A break above 87.48 will likely bring us to 90.94. For tomorrow, I think there could be an attempt to try to fill that gap to 86.96. Once the gap is filled I will exit all long positions until the market reveals more of itself.



Watch WFC to lead the financials for a "little" upside, there will also be an EIA report at 10.30am. So it could be a choppy day to play the SPY...but if you stick to the technicals you should be ok.

Staying motivated

As you might have noticed, I have started posting something different recently like my favourite songs and idols....Who knows what I will post in future...you will see....lol.

Trading full time requires lots of commitment and concentration. Each day presents you with different mental challenges....
There are days that will bore you and make you sleepy....On certain days you will feel sad and depressed due to the tape action.....For some people...if the going gets really bad....they will cry!

I get my source of inspiration from Songs and Singers. A lot of singers sacrifice their life for their fans....because they just don't know when to stop singing! Great songs are true stories about "Life"..... Life is a discovery and an experience that takes many many years....

So when I find a good song.....I too like to know more about the life of the artist....This gives me a deeper meaning when I play the song....

People like Lara Fabian, Celine Dion, Shania Twain, Mariah Carey and Susan Boyle are not just beautiful faces who have nice voices.....

If you understand how they live their lifes.... Then you too can learn from them and improve your life!

What listen to to keep awake today (April 21, 2009)

IBM (April 20, 2009)

IBM is releasing its earnings today, so I will be watching for a gap up or slight gap down depending on earnings. 111, 116 could be possible targets if IBM beat earnings.



I am also interested to watch out for an IBM led rally on the broader index.....

As long as SPY is not caught in the tight band of 85.8 - 87.65...Expect a big move to 90.79 or 83.98.

SPY, JPM (April 16, 2009)

Morning, SPY probably might not go above 86.9 today. Remember its OpEx, I suspect 84.5 could be the level that MMs are trying to target.



JPM still has room to go, key support is at 29.65. 34.89 is key resistance to breach to go higher

XLF update (April 16, 2009)

The MMs probably might end up losing some money to the Call option buyers if we go higher.

Im still neutral with the markets despite today's last minute rally. There is always that possibility that the MMs might wanna reverse course a little to make some Call options expire worthless.

I am sticking to my plan to day trade only.

XLF to somewhere close to 9 dollars (April 15, 2009)

Financials will likely pullback further, so damn obvious....See if I am correct....

See these option chains...don't the strike prices in red squares look SWEET AND JUICY?

Careful with OIH (April 15, 2009)

Looking at the options action, OIH gives me the impression that it will hit somewhere close to 80 on OpEx. Of course I will expect there to be an up move to suck in bull tards. Its a trap IMHO.

So watch out!

Wide trading range (April 14, 2009)

I like the action in SPY today, basicly we are just stuck in a wide trading range of 83.89-86.66.
This area is excellent for day trading, IMHO.

This week is suppose to be a very positive week for the financials. I think the best trading strategy now is to move with the flow. If the market wants to go higher than 87.5 it is possible that we will visit 90.94 this week. On the other hand, falling below 83.72 will likely take us back to about 81.

Back into my radar (April 13, 2009)

ABT is making a nice turn IMO, technically this stock is still in a downtrend. However I think next week could be a turning point for ABT due to increasing buying interest. Do note that, ABT is reporting earnings on Wednesday.

Nice play here to buy on dips for a day trade....this can be a good short play too!...lol I like the intraday movement of this stock because sometimes there are days in Financials or Commodities that make you fall asleep...lol
Watch that 44.03 resistance level.



Not forgetting JPM, I think this stock will likely hit the levels in red if earnings don't disappoint. But I think this stock will likely pullback a little after that....because I smell fish....hence a possible short term short opportunity.
WFC is a great long opportunity, I think this stock could hit 27.33 easily this year. I tend to think that WFC will pullback a little too....be cautious

Note: I expect some consolidation in Financials before hitting the targets at some point...so please manage your risk accordingly.
(I am seeing some other opportunities....to be continued)

Things to Watch (April 11, 2009)

Hello, whoa...what a busy trading week it has been...the market has been keeping me on my toes at all times. Especially when the market moved sideways, that has been a constant mental battle...and suddenly things exploded and bluw out the top.

Looks like all the stocks in my stock watch posted last week all worked....

At this point I haven't got the faintest idea what is going to happen next week with so many key earnings reports being released. At least WFC provided us with a brief introduction of what to expect from other key banks.

I will be watching earnings for GS (14th Tues), JPM, GOOG (15th Wed), GE (16th Thurs). So there should be plenty of opportunities going around.....

The Euro is currently moving sideways and chart patterns for Crude Oil and Gold suggest further sideways price action. But I think Gold is setting up for a big move next week...the direction is still unknown. However, do note that some key gold miners are reporting their earnings in the following week. So....I suspect the MMs will do something to the gold miners prior to earnings.

Lets review the chart of SPY. As you can see...we got this far probably because the supplies have been released up to this point. There are two more major congestion areas above 85.81 to deal with...so this market should still be traded with caution.


My watchlist for next week:
WFC, GS, JPM, AAPL, OIH, XOM, IBM

Thank you Scott

This song is dedicated to you guys out there.

Some Ideas Next Week (April 05, 2009)

Hi folks, hope you enjoyed your weekend.

Here are a couple of ideas I have for next week.

IBM is a good candidate to go long on pullbacks. I am targeting this stock to hit 111 in the coming weeks. There will be some resistance between 111 - 115, but this level of resistance is nothing compared to what we faced up to 96.


There is some visible resistance for HPQ near 34.15, I think at some point this stock will pullback to 32. If you like stocks that can go sideways to write options for this OpEx, this might be a good candidate.


I have been saying in my previous post that GS is poised to go higher, watch out for 123 next week. If it gets above 127, watch out for 138. Oh...try buying on dips please, I am expecting this stock to pullback soon.



Some profit taking is happening in GOLD. I expect this stock to find some support at 43 or 47 level. You can go short if you see this stock moving. Remember, take what the market gives you...don't hope for too much and get greedy!


Same situation with RGLD, I suspect this stock is heading back to 38. That might be an ideal place for us to buy on dips....we shall see soon.



Another addition to the collection is AAPL, this stock can go to 124.9 whenever it wants. Though I advise you to be really careful in the event of any profit taking. The drop will be big judging by the amount of buying from the bottom.