Tag Archive for Bernanke’s Bounce

Bernanke’s Bounce

So here we go… as I said in premarket, I am not feeling too solid about the short side so look to hedge your bubble shorts (aka LNKD et al) with some GOOG, ORCL, MSFT, INTC, etc… etc… here but be ready to turn on a dime… 100 day MA and 50 day MA look to be in play (AGAIN) — yes, this is what we like to call the “Blow Up the Trend Follower” HFT computer program Chop Festival of trading, AKA Buy Dips and Short Rips…

Makes you seasick no? In any event, look for the action to continue but keep that 50 and 100 day Moving Average on your screen — I use the simple MA but some may use the simple and exponential… This definitely hurts new to the party shorts here as they had to cut long losses yesterday and shorted at the close of trading…. eeeeeeeeeeeeeeeeeeeewwwwwwwwwwwwwwwww………..

Lots of reasons for the bounceage but the main one is El Bernankenstein’s POMO experiment no doubt… Look for some stocks that traders can rationalize as being bubble type names to buy because as my grandmother used to say “everythings goin to the internet” — it’s not too complicated really, but you want pairs trading techniques here if we can’t break the 50 and 100 day…

Stochastics and RSI look oversold, I would not be suprised in yesterday was simply ANOTHER bear trap in the short term… Longer term without QE3 I think the it’s hard to bet on a further rally for Ye Old IWM AKA RUSSELL 2000 AKA Bernanke’s main indicator of the health of the economy and favorite day trading vehicle…

All the best! AND GOD BLESS AMERICA….