Buy on market strength

STMP is talked about as NFLX of 2008. You know the growth story that ensued until the recent collapse. Look at the massive increase in volume. Scale in upwards, is the plan.

I like the chart of LTD.

It is all about the Bucky!

In a post 10 days back, I said the US dollar should get support at the 200 DMA. USD went below the 200 DMA only to reverse back above both the 200 DMA and 50 DMA within 2 days. Will USD stay above these 2 supports? You could use these support/ resistances as a reference to enter the market long or short. USD is inversely correlated to the market, keep that in mind.

I am posting the USD chart in the same format as in 2 weeks back. I see further weakness in USD in near future although USD seems to be firming a bit too much in just 2 days. But, having seen this market move 150 SPX points roundtrip in 5 sessions, I urge you to be cautious if you are long or short. Be nimble, and take small positions unless you are super confident. This market is certainly not for the faint hearted!

USD chart as of close yesterday. Stockcharts updates at the end of day. But, as of today morning, USD is at 77.33 in real time which is way above the 50 DMA as shown in the chart. It would be interesting to see if these supports hold.

p.s: Recently, I started tweeting. My twitter page is this. 

Shorts can stay solvent longer than you think

Chanos made good money shorting Chinese stocks since 2010.

Chanos in Bloomberg

The Chinese stock market's performance over the last few days is insipid and uninspiring to say the least. While global markets rose anywhere from 15 to 20% in 2 weeks, SSEC's gain was limited to 3%.

Short sell FXI on a SSEC break of the October lows.

Technology not confirming the rally

Boom Boom Tech not confirming this rally. When was the last time that all of QQQ, AAPL, GOOG, INTC, MSFT, IBM underperformed the market. They don't have to outperform the market every single day but on a day when market is rallying hard, they should be outperform the market. 

Having said that, I don't believe this is the time to sell short. I believe I see the market higher than today in 2 weeks, 1 month time. Before that, there could be corrections. That means this is not the time to buy either. You don't want to buy at the top, just in case this is the top.