Warren speaks at 8:30 on CNBC.
What are the odds he says SELLSELLSELL? It would be a perfect bookend to a rally that started two weeks ago when CNBC’s guest was Meredith Whitney, who’s upgrade of the financials sparked off the biggest market rally in almost20 years. After bailing out even on our $1.20 QID $29 callsyesterday morning (thank goodness!), we had the nerve to go for the QID $28 calls into the close for $1.15. We thought we hit that one out of the park with both AMZN and MSFT disappointing investors. After all, doesn’t MSFT alone make up 7.9% of the Nasdaq? Little did we know they had Buffet on deck and we all know he can knock it out of the park anytime.
We were otherwise wishy-washy into the close. We broke out of our watch level on the NYSE and it was what we like to call a “Free Money Day” as the market headed up and up and up all the way into the close so it was hard to go bearish, even though we are now at the top of our expected range, with the Dow testing (and failing) our 9,100 5% rule. I’ll be drawing up a new Big Chart Review this weekend but my statementto Members in our 3:42 alert was: “Japan is very likely to break 10,000 tomorrow and the HSI should move up too. Europe ran out of time or they would have gone higher so it’s not likely we go down first thing tomorrow.“
Even with the disappointing results from our tech leaders, both the Nikkei and the Hang Seng made good efforts with Japan finishing the week at 9,944 (up 151 points, 1.5%) and the Hang Seng just failing to hold 20,000 and up another 0.8% to finish the week with a neat 1,000-point gain (5%). As I said in yesterday’s morning post: “the market’s WANT to retrun to the 33% off (the highs) level.” We did make it “through the roof” yesterday and today’s question is going to be – can we hold it?
As you can see from Trader Mike’s S&P chart, we have a rapidly rising trendline that is very exciting if we hold it but also means we have very little tolerance for failure. This is what I sometimes refer to as an “air pocket” forming under a market run – we simply haven’t put in enough of a base to…
