Monday, April 20, 2009

MARKET COMMENTARY (4-20-09)


My MTD gains stand at +57%, with YTD gains exceeding +120% and I am fully long with no short positions. Interesting, no? I only have two positions, which are FEED and LVLT. FEED makes up the vast majority of my portfolio, and God knows what LVLT is doing. Let me reiterate my $5 target on FEED right now, due to the 40 some e-mails I've received on it. Quit asking me "if I am still holding" or "if I sold yet". I'm sick of it. I fully intend on making 100% on this stock inside my 3-week holding period.


Back to the market. The SPX has double MA support with the 100-day and 20-day MA's sitting 2 pts below the close. Before shorting, I'd like to see a weak bounce and some all day flagging action. This will set up the market for another major move down. It all depends on what happens tomorrow, and possibly Wednesday, before I start scaling in short positions. Note that the wedge has technically broken down, but it's all about the entry. Entry will depend on a neutral flag (developing between 830 and 850) that rides the 100-day and 20-day MA's. If it doesn't happen, then it doesn't happen. If it does, be ready for it.




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