What a market we have right now! New highs for the year on the SPX for the fifth day in row! Whats even better is that we dont really have any resistance on top of us until almost 1100, so until we get there, this is a buy the dip market! We did break a three day uptrend-line at the very end of day, and stochastics are very overbought on the hourly and daily SPX charts, but we have great support on/around 1039, so I'm looking for a pullback to this area to reenter long scalps, and adding to long swing tomorrow (but we probably wont get there, so any pullback im adding). As far as data is concerned we have the Consumer Price Index numbers coming out in the morning with market "experts" saying the core CPI will grow by .1% (which this is beyond me as to how it's going to be growing right now). Anyway for all you kids that didn't pass ECON 101, the CPI measures inflation, hence I think there could be a good trade in gold stocks tomorrow on the short side if the street doesn't like the CPI, but we'll get to that in a sec. So now for my first ever picks for tomorrow.....
-Gold futures have formed a bastard head and shoulders pattern...I like a short in gold...
Safe play: Long DGZ (double short gold future etf) around the 22 area, target 23.50
My play: Short ABX (Barrick Gold Corp) 39, target 36
-A stock I've been all over the past two months SPG (Simon Property Group) has just been on fire! This guy is in buy the dip mode, if it can pull back to anywhere around it's 20 ema, I'll be all over it
-PALM...what a turd of a company...the short on this one is kind of a crowded trade, but its got a very nice downtrend line that it tagged today on the heals of an upgrade (classic analysis that probably chased it and now trying to get out of it), if you can short it around the 15 area I think this is easy money
-RIMM...what a great company...it broke out of a B-E-A-UTIFUL wedge pattern last week...and I think it's going higher. It ran into earnings last quarter, it's doing it again, a no doubt buy the dip this week. 90 target
For all you ES traders out there...my go-to play the past couple weeks has been to fade whatever the street's knee jerk reaction is to data, so If we pop on the CPI numbers...let it run 4-5 candles, then short, just make sure you cover before the open or you could fry, same play visa-versa.
Well the PM stuff is kicking in so I'm calling it night, and first post. Lets ride this BULL!! (market)
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