The S&P Indy 500 (CTB, SPX)

We’re going to attempt two separate operations today. First, to address (briefly) the current state of the equity market and second, to offer you a unique trade on a single company we’ve come to like over the last few weeks. We’ll start with the equity market. 1. KEY REVERSAL DAY We’re not going to belabor the point – just let you know that we saw it. Last Tuesday, June 27th, the S&P 500 notched a new intraday high before turning over and closing below the previous day’s close. This is how it charted – That’s the definition of a key reversal day, whose meaning is understood by chartists to be a harbinger of (in this…

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On the One Hand… On the Other… (GLD, SLV, GMCR)

There have been some tremendous developments in the precious metals’ market this week and we’re therefore obliged to start our discussion there. To begin, let’s just say that the jump higher in both gold and silver last Thursday was exceptionally large and equally unexpected. It caught a tremendous number of shorts off-guard and also spurred a good bit of independent buying. But whether or not it marks a final bottom for the three-year bear market in the PMs is a question whose answer we don’t yet have. We’re perfectly ready to jump back on the gold bandwagon if the technical evidence is on offer and advises as such. But for three full years, it’s been…

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Homage to the Aged (MSFT, CSCO, INTC, ORCL)

We’re not so big on popular culture as we once were. Movies and music used to be our lifeblood back in high school and college. Today, we’re more apt to agree with that highbrow critic who opined nearly twenty-five years ago that the “movies are just dog-sh*t. Can’t be bothered to go. As for music, we don’t listen anymore, though we still hold a soft spot for some of the older balladeers, among who we count Bob Dylan and Gordon Lightfoot to be among the cream. And it’s precisely to these two songsters that we make reference today, as we turn our attention back to our current market predicament. Why these two? Because Bob Dylan’s…

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The Next Wave Higher (XLF, SPY)

We’ve spoken a number of times in the past about the advantages and use of technical analysis in the study of markets. And we’ve also discussed the limitations that we currently face using those same tools as we attempt to navigate what we believe is an unprecedented market reality – one of global super-hyper-liquidity. [click on image to listen] Truth is, we’re not so sure the term ‘super-hyper-liquidity’ genuinely captures the essence of the existing and potential number of dollars (and Euros and Pounds and Yen and Renminbi, etc.) that are floating about the world’s financial system. We might have to add another ‘super-duper’ or ‘mega-colossal’ to actually do the idea justice. Have a look…

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Facebook’s Friends offer Filthy Lucre! (FB, SOCL, SPY)

Let’s open today with a look at our favorite stock (that we also love to hate), Facebook Inc. (NASDAQ:FB). We don’t intend to confuse y’all with statements like these. The truth is we haven’t much use for a company like Facebook or its product, outside of course, making money off the stock’s moves. Yet that said, we also appreciate that Facebook is emblematic of today’s tech-mad, anti-social, fame-crazed world and in accordance with that, we’ve taken the liberty of naming the current bull market the ‘Facebook Market’. And it remains very much our contention that as goes the stock of the world’s biggest time-waster, so, too, goes the broader market. And with that in mind,…

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Sitting Pretty on Three Open Trades (XLU, GLD, GMCR)

It’s always worth a second look when the leading sector of the market begins to turn over and yell ‘SPANK ME!’ And so it is now with the utilities, one of the market’s biggest gainers since New Year’s, which topped out at the beginning of May and has been edging lower ever since. Now, on the one hand, this is no surprise at all. In fact, it’s an inevitability. Every leading sector eventually gives way to a rival, turns lower and regroups before climbing again. The question that confronts us, though, is a little more subtle. And that is, whether the turn lower in the utilities is a mere matter of sector rotation, or whether…

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A Gold Pen! My Kingdom for a Gold Pen (GLD, XLU, DIA)

Buckle up and hold on, ladies and gems, because the ride’s about to begin and we ain’t got no insurance. What we have instead is a whole mess of trades to review and a few new ideas to ponder, so get a pen while you’re at it. We begin the week with a quick word about fellow scribbler Matt McAbby, who last Thursday penned a piece on deep-in-the-money options that’s a MUST read for all who care about their investments. Here goes – On March 3rd we recommended a deep ITM CALL position on the indexes. The letter was called As the World wars, Wall Street Waxes

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Noah Would Have Bought CALLs (XLU, SPY)

We’ve got one trade to close before we get down to business this week. It was a winner, thank the Lord, not a grand slam homer, mind you, but a nice turn of profit. It was an initiative we booked back on February 24th, just prior to the broad market top-out and at the end of what we figured would also be a top for the Utility sector. The letter was called Downside betting on Freeport and the Utilities, and there we wrote as follows – [W]e see the longer term picture is bullish, despite any temporary stall that may be upon us. RSI and MACD are above their waterlines and all the weekly MAs…

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Measuring the Worry one Cup at a Time (GMCR, TSLA)

So just what is this so-called ‘wall of worry’ that epitomizes bull markets on Wall Street? It’s a phrase that’s bandied about by just about everyone. But until you open up the patient and actually stir about in his guts, you really have no idea what it means. It’s for that reason that we’re taking a minute to opine on the exact meaning of the term, its relevance, and how it works in reality. We’ll start like this. ‘Bull Markets Climb a Wall of Worry’ We’re in a bull market. It’s been going on for five years and, for technical and other reasons, there’s little reason to think it will stop. That being the case,…

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Make Money while the Coffee Spills (GMCR, FB, SLV, TSLA)

Coffee Spills

We’re going to look at a few items this week. With spring upon us, it seems appropriate to survey the scenery before the heat of summer and that sweaty July madness arrive and make it hard for us to think. We’ll begin with what could only be considered a schizophrenic trade in silver. A quick look at the iShares Silver Trust (NYSE:SLV), the most popular equity ETF for the grey metal reveals the following – And we ask you, as fellow men and women of reason, educated people with a disdain for all things coarse and corrupt – just what the hell is going on here!? Is it some kind of joke?  Is this what…

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