TCM Notes : 10/14/09

• Wednesday should provide ample action as JPM is set to announce Q3 eps pre-market. INTC already got things moving by beating their numbers and guiding higher for the 4th Q. As it stood going into the after hours close the markets were set to gap higher today. If JPM doesn't please the crowd though we could see some serious selling. Which works for me too since I want to buy pullbacks into support. However, my belief is that Jamie Dimon will speak well about the future of banking and the markets should have a 1%+ up day. A key level I've been watching in the SPY held (107.32) and after INTC reported the SPY moved all the way up to 108.52. That's a new high in this move. There are plenty of bears out there with buy stops above this level, and they are getting squeezed pushing us higher still. I actually added more UYG at 6.18 into the close of after hours trading. Today should be electric. I can hardly wait!
• STAR a company featured here back in April found itself being bought out by CSCO Tuesday morning. 2.9B or 35$ cash per share. It validates the fundamental and technical work we did in the name, but there is one thing we did wrong. We didn't hold it long enough! A nice trade from 14 to 19 is good and well, but realizing a trades full potential is something I sabotage myself on regularly. I knew STAR was a winner, but the grass looked so much greener else where. Oh well. Another lesson learned.
• BX blew threw the 15.30 buy point Monday. I would expect that level to become support.
• IT spending has already been in focus and received numerous upgrades by various analysts. While the stocks associated with this have run; they should still be considered at major moving average support on any weakness.