Tricky tuesday | Bulls on Wall Street

Tricky tuesday

 
 
 
 
 
 
yesterday was a swift kick to the places that most men hold near and dear.  Mother market has a way of shanking you while ur sleeping.  But in reality everyone pretty much new that yesterday would happen at some point. But when ur riding the chill waves of the China ding dong…seeing the burrito lotto everday who really cares about an upcoming bloodbath.  Even as Bob the Bear and his merry band of crotch sniffers started circling our chinese overloads shifted the funtime from china ding dongs to Rare Earth Metals.  So the party continued. while the average retail trader had his nuts caught in a vice via eggregious leverage towards Aaple and VMW the local twitter trader was margined out coked out on REE, MCP, SHZ (yours included).
 
As we talked about in our chatroom and premium blogs we havent tested the 20dma this whole ride and in the next day or 2 we were bound too. Last week when we pierced the upper bollinger band that was the first clue that we getting ready for a snapback.  the market is like a rubberband the more you stretch it in a particular direction the more violent the snap happens.  that coupled with so many leaning very heavy heavy on the tech side led to a nasty thrashing.
 
One day does not make a trend though and it doesnt confirm a new trend. In the market follow through is key. If bob the bear is gonna show his “sak” he needs to fade this next bounce or at least make it a dead cat bounce.  What happens today will tell a lot.  Do we bounce lightly or slightly or with some gusto.  if it looks like a dead cat bounce my plan is to sell into it and raise cash levels to 50% or more and wait for a better pullback to SPX 1150 and reload.
 
In the meantime it looks liek we will get a light bounce today so there will be plenty of good daytrades. the key is to get in and out…
 
If the rare earth momo continues any china name with the word minerals or metals will get run up by traders.
 
I like……. on momo only
 
 





couple banks popping up on radar too. Watch DEAR for volume and momo. Last time it beat earnings there were mutliple intraday breakouts that could be traded. It ended up hitting 5’s!.

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