The market took off with a big gap this morning over the eurozone news and anybody with the buy the rumor sell the news mindset got taken to the back and beaten with one of their own limbs. The huge gap was met right with the 200 day moving average causing a slight dip to sucker in some bears and bam a buyprogram hit again (right around 11am …again!) Overall there was nothing bearish that could be said about this day. The 200 day moving average is the long term moving average. As long as that holds there will be bulls fighting for it. Often to key clear levels like that is not easy but news trumps all. At some point some digestion/consolidation will happen above these key levels but it seems its going to take another piece of a bad news cycle to take us down back below. With so many layers of support underneath the bears might be out of firepower to take us down in a significant way without a surprise catalyst. These are the moments where the bulls are clearly in control and your really need to milk gains. There was performance chasing abound we talked about this weeks ago that if we get a couple 2% days in a row off the bottom of the market range every broker/manager/fund will have to chase the performance in fear of missing out on an end of year gorilla run. It wasnt an easy day especially if you werent positioned long as so many stocks were up 4-5% right at the open but often what feels like chase isnt. Stocks especially ones with high beta can often move 20-30-50% in weeks if you are not long at the open and a stock gaps up there are alwys numerous opportunities to enter on an intraday setup and then swing it. Not much else to say it was impressive. Breadth was through the roof. There were over 3000 stocks that moved 4% or more today its very rare you see those type of numbers. As of now the bulls are in control and the bears just dont have enough “sac” left to muster up anything.
We had a huge day in the chatroom….. our 2 ladies @mb_willoughby and @vray23 were especially on fire today hitting big runs in JVA (+1.00) CSIQ (.25) GMXR and others! they are truly some talents and really cute too! even after tim sykes hired over 70 hookers to entertain for his conference they still got all the buzz from the dudes!
I myself had a pretty good day too but i was all over the place like a crack addled monkey…these gaps always mess with me and totally throw any sane portfolio allocation, sizing, setups out the window. what I will end up doing is throw 10 different types of terds against the wall and let the 3 stinkers run and make big gains in them while i sell everything else flat. I hate trading like that but when there is no ryme or reason and you see the market up 400 points and you get these 2 chicks throwing out heaters and the bengali tiger @szaman nip and tucking his way as usual….i get a little ansty and have to remind everyone.. that it was kunal00 that invented the HOUSE OF BOOM and is the godfather of THE ANNEXATION OF PUERTO RICO.