Stocks are down modestly after a huge run last week. Is this the top or a buying opportunity? Not sure. But being down only 50 after nearly 400 points up means people either aren’t wanting to sell, or strong demand is soaking up the selling. We want to see if this new round of quantitative easing truly means higher prices for commodities and stocks.
This entire run up could have been the anticipation of qe3, and just be the classic, “buy the rumor sell the news” deal. Or it could be for real, let’s see. We do not pick a direction so we are just trading accordingly:
Buying more spy calls at end of bell.
Watching CMI closely if it bounces off of the 20 tomorrow.
Watching JMBA if it holds the 20 tomorrow.
Looking to add to ETP at 40 & 42.50- we just want to see if it holds 42.50 today, where it is currently at.
Have EMC at a strong buy, if it holds the 100.
Likewise, we have AEM as a strong buy, and will possibly buy at close. Updates to follow.
Closed out Materion and FCX so we will remove from site shortly. However, we bought some calls on XME (metals mining etf) to participate in the momentum without risking much cash. Just sort of testing the waters with cheap call options. It is down today, but we will look to pile in with options when it pulls back enough.
That’s seven things to do tomorrow. Can’t forget.
