What a day huh? Washington announced about forty one dollars in new taxes and about a buck in spending cuts. Tape explodes. Kind of like finding out your Uncle Ned only has stage two face cancer, but you bring kegs and Cuervo to his house anyway, just to give him a high five.
The market isn’t the economy, and if you don’t know that by now you are lost. Today was an impressive (to say the least) extension of Friday’s short squeeze, and it may indeed have legs to go higher. No one wants be the last guy on the deal team, so performance chasers are at the bar discussing their next move, and shorts are suicidal. Bearish pundits everywhere are starting therapy groups and looking for their next CNBC invite in their inboxes. Will there be one?. They hope so.
On Friday I tweeted that the market was bored, dripping with liquidity and ready to rip. It did.
We are up about 64 points off Fridyas low ($SPX), which is a lot. The $SPX closed today about 10 handles off the 9/14/12 highs. That has been a HUGE level for forever. We could be there in the pre market tomorrow, who knows, BUT I caution everyone to be careful here and not to fuck with a good thing. If you”re early you’re wrong and if you’re late your stupid. Trust me, Ive been both, but the bottom line is to play it smart here.
Hey, guess what? $AAPL got pressed and ripped some more too.
Today my subscribers had a great day and patience paid. Here are today’s trades It’s the new year, come by for a free trial.
ARMH selling +4.10
SINA selling all +6.30
Good trading,
Joe