ChartyChartCharts

Lots of nice looking charts out there. Take a peek at some transports, tech, and consumer staples names. Yes, they are all defensive, but that is where the money is flowing, so stay with the trend and stop trying to bottom tick Wamu.

Dividend yields also very attractive, combo that with call sales and you got yourself some nice returns. Thats what I like.

Moon Shot

I will say this in print, we will see new highs in the market by July expiration. Why is this? Successful retest of the January lows followed by 3 300point up days in a month. All this converging with a 40 week cycle low in the Elliot wave cycle and bearish sentiment at all time highs. If you add that to all the liquidity added by the Fed, you have a recipe for a quick run to the upside. The sell in May crowd is short right now and will create demand quickly for stocks.

Ah, Final Four, first weekend of MLB, it couldn't get much better than this.

Day Tripper

Well its been a while on the old blogger. The more things change, the more they stay the same. Still like stocks here. Cheap valuations, oversold technicals, bearish sentiment, low interest rates. Buy writes still give an awesome risk/return in this environment.

Take a look at Muni Bonds. Yielding 120% of Treasuries. History has shown this to be a great trade. We are talking 15%+ on a bond position! The market is pricing in huge defaults by municipalities, way out of whack with the risk profiles.

Born on the Bayou

Nice pullback here. We trade down to the recent weekly pivot, should see solid support 1335-1340 SPX. Took some of the nice sub 1300 buys off the table around 1380 on the Fed rip. That's what you got to do here. My strengths tend to be entry and exit points on a trade, but holding them as an investment can be hard, especially at this volatile period.

Still love them buywrites as the VIX new range of 25-35 will get you paid for selling premium.

8 days until pitchers and catchers. I only have to say one thing for the Mets, Oye come va.

Fed Shmed

So we are all going to sit around all day and wait. That is the feeling I got from an institutional broker yesterday. He said his clients are doing nothing. I guess they have better things to do than make money. I see tons of opportunity in this market, whether long, short, or neutral. It all depends on your style, risk tolerance, and ability to get liquid.

By the way, I'll take the Giants with a 50 basis point cut.

Duke and Duke

Buy, Buy, Buy. Please don't ask again what I think the markets doing. When the local news yesterday morning had a "Global Market Sell off" with Europe down 1% as one of the top stories, it reaffirmed my instincts. I strongly subscribe to the shoeshine/cab driver theory. We are poised for a new high this year.

Lord I was born a Ramblin' Man.....

So Societe General decides to unload a $7 billion loss onto one trader. They say he hacked into their systems and created offsetting trades to make the position look smaller. I executed trades for their prop desks in the past, and would take a beating by them if we were off on a couple of hundred shares. Trust me, they know of every position on every desk at the bank. They have risk controls for how many rolls of toilet paper are used in a week. The only way I see this as a "rouge" trader, would be if he ran up commissions with one of his broker buddies. A couple of thousand euro Bordeaux's on an expense report would be the first place to look.

So back to the market. A classic panic and rally to end the week with some consolidation. Feeling the bottom is near as the public is getting chills of 2001 all over again. Remember fear and greed are the real drivers of financial assets. Right now fear is on top, then greed will take over once the easy money is made at these levels.

Trade long here until April Earnings. Then I would look at shorts as that will draw the public back in.