- Big names reporting today are JPM and GOOG. Others of note : ITW, HOG, CY, GCI, GPC, IIIN, PPG, ISRG, BIIB, and APH.
- Pivot Points for SSO, UYG, and SPY are: 22.35.....3.47...... and 84.76
- An idea floated to me by Emini Monkey (chief primate at TickerMonkeys.blogspot.com...up 305% ytd!) Now that Direxion's 3x leverage etfs have been out for several months they have both garnered some serious attention. I'm not talking just a bunch of eyes, but actual volumes. Hundreds of millions of shares. The pundits say these things don't work, and they would be right as of the moment as they both have plunged since coming to the market. The idea now goes like this : They are both at 9$. Buy an equal amount of both here, and sit back and let time take over. One should go to 40 and the other to 2. Giving a "risk free" profit of 24k. Could this be so? Are the big money players just selling both of them because they know the product can't last? Do they have "systemic" qualities and should be scaled back? Those are the attacks I've heard about the double / triple shorts. Well if you are going to take those away then you would have to take away the double / triple longs as well.....you know.....to be fair and all. Fairness has no place in these markets these days, so it will be interesting to see how this all plays out. My thinking towards UYG for instance earlier this year was pressure was being applied to them because Citigroup is a counter party to the swaps they use to gain the leverage. So the threat of nationalization at the jump of the year really put the hammer down on these. One thing I will say is that FAS is now above it's 9 and 20dma while FAZ is now underneath them. And oddly enough they both remain underneath their 86dma. I say FAS is the play going forward as I thought the introduction of 3x short products months ago marked a top on the "short" products theme. This has been the case for most of those lately....they all made lower highs as the market made a lower low. A divergence at best perhaps signaling that the worst is over.
- Another data point worth noting is the CDX index tracking CDS on 125 companies. It appears to have double topped as that casino starts to slow it's pace some. And it also has divergence / convergence characteristics as it pertains to the S&P500.
- And while SLV looks like it's setting up in a nice cup with handle pattern I think it could be flawed. You never want to see a correction on the left side of the base of more than 35% for this pattern. It flaws the whole thing, and while it still may work for the pop up out of the handle. It still carries risk due to the flawed base.
- And this just in as I wipe away my eyes. GGP has just filed for bankruptcy. The biggest commercial RE collapse in history! This should put more pressure on other similar situations. Every delay GGP got up until now would bolster others like PLD and even MGM and LVS. Now that they've gone tits up the plot thickens for the others.
Trade your plan. If Mr. Market tells you you're wrong..........listen.........because he's never been wrong!
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