When Confidence Crumbles

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Once again we awake to an array of seemingly contradictory news and reports across the spectrum. Whether it be Ebola, the financial markets, or just plain ordinary life in general. It seems everything is once again in turmoil.

The issue at hand is migrating from worrisome to darn right alarming. And that’s not counting the general public at large. That speaks directly to the very one’s trying to re-establish confidence.

Today, what was once presumed as “a troubling situation in competent hands.” Now appears more inline with the space between “in” and “competent” being a typo. (more…)

The Key to Success

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The stock below, KeyCorp, is a good short candidate in its own right, but it’s also representative of the kind of short I’m seeking these days. It has these elements:

+ a clean topping pattern;
+ a firm drop, exhibiting that it’s vulnerable to the general weakness we saw in past weeks;
+ a hearty bounce, pushing it to a more attractive risk/reward level.

As with so many other stocks, this one has a horizontal line anchored on a gap (in this instance, at a dollar value of $12.71) (more…)

The Fade

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Yesterday (Sunday), the ES and NQ rocketed higher. I was curious as to why, and some folks emailed me about an “exciting announcement” IBM had planned for this morning. In addition, Japan was rumored to be considering – – I wonder what?? – – more stimulus! Because God knows, the only thing Japan needs to make its economy boom again is to print more Yen. Couldn’t be be simpler. Thus, I went to bed with the ES up double digits.

As I opened my iPad this morning, I was bracing myself to see what the latest was……….but the number was now red. It seems that the world is starting to roll its eyes at the perpetual stimulus, and IBM’s exciting announcement was that its earnings sucked whale, and now the stock is pooing all over itself. (more…)