Tupac this morning for no particular reason.
Saturday, August 27, 2011
Saturday, August 20, 2011
Double bottom, simple ABC correction or something far worse?
A simple ABC correction targets $106 on SPY or ~1057.5 on the index. If this is the beginning of a new long term trend, as the cross overs in the chart above suggest, then the bottom could be potentially much lower. However, I wouldn't be surprised to see Bernanke play some card up his sleeve and send us spiraling higher out of a double bottom. I am posturing bullish at the moment even though I don't think we've seen capitulation yet (on either side). I tend to think that the bull market isn't over yet and that we have one last big leg up, but honestly, these charts suggest otherwise. I'm leaning more towards a fundamental, longer term, argument that inflation should start creeping back up with rates at zero percent for two more years. So I'm not trying to trade these swings but nibbling when there's blood on the street.
Disclosure: Long IWM, LNKD, FSLR (broken charts, I know)
Sunday, August 07, 2011
Wednesday, August 03, 2011
LNKD Cup n' Handle
This cup n' handle looks pretty decent to me with a target that's $50 higher using the measure rule. The potential for LNKD to sqeeze is extremely high due to the small, overshorted float. This could start to fall apart if it got below $95 but above $110 it can soar. There might be a pause at $122.70, the IPO day high, but even with Bulkowski's conservative target, you get ~$135.
CAUTION: LNKD reports quarterly earnings tomorrow (after the close) for the first time since they went public. This report is likely to break the pattern one way or the other.
With the bollinger bands tightening I can't see a small move in the next few days. Most other indicators look bullish to me (RSI, CCI, MACD, stoch). Tomorrow we might hold mostly unchanged (as volume begins to swell) but I'd expect a large gap Friday.
Disclosure: I am long September LNKD calls.
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