I am 200%+ invested in the market

As The Fly said yesterday, “The True Cocaine Trade is to GO ALL IN NOW;” so I did. I went all in and more. I was 150% invested, I put my account to work and when the market opened today, I was showered with praise and because of the profit cushion from MON, I increased my risk and started a position in USO. 

I have been warned about the Chinese numbers that are coming out over the weekend, but I do not think it will matter. Other markets will see how we sky rocketed today as the strongest economy and they will follow suit; with no major economic news in the US until Thursday, it might be a slow grind higher. This cocaine fueled rally does not want to stop and it just keeps going higher, so I think we will grind higher a little bit more before we stall out around 165.75s (fib lvl; low probability)? If the market does not push higher, I will just be a little bit green, but if I am right, I might even push further and add more risk until Bernanke  greets me with his QEcopter throwing cash down on my face.

 

Trend Trading

The SPY is continuing this uptrend and had a very nice bounce today, but will it continue tomorrow?

The McClellan Oscillator also showed a bounce due to it being significantly oversold. 

Above is the daily on the NYMO bouncing today and below is the weekly chart of it. Take a look at that -100 lvl, it has been long-term support and we were very oversold. 

 

Tomorrow’s econ # should show which way the market will go.

I’m not sure if the market will puke if bad numbers come out, but if there’s going to be good #s, we could get a descent rally.

 

Anyway, I went and BTFD today and picked up some MON.

 

A few other charts that looked really good that I’ve been watching are:

 

 

 

 

 

 

 

Be Patient and quick

On 5/20 AMBA had significant volume premarket. Its average volume on a 20sma is 865k and it was already beating the SPY in premarket. It was printing around 16.50s, but I did not take any premarket because it was still too thin; it had a .30-.60 spread. So I waited and when it opened, a 700k offer came in at 16 figure on NSDQ and ARCA, but a buyer aggressively took the offer printing 3-5k each print. I saw it decrement and print really fast; no one was bidding and it was just all buyers taking the offer, so I took some as well due to the volume, 16 level, and aggressive prints right after the open.

Here is the tape of the b/o

 

Oh, you should probably watch it in HD on the vimeo site.

 

After it took out that liquidity at 16, there was nothing behind it and it gapped up to the .20s immediately – scary. I have been seeing a lot of this occurrence within the past few months; breakouts without liquidity behind them and then they fail b/c there’s also no momentum behind it and people aren’t willing to pay a higher price for the stock. Then you have all the weak hands scared and getting out of their positions they got at the price or before the breakout. So people are not only offering out, they’re most likely hitting the bids and pushing the price lower.