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  • Market Review: I’m Shorting QQQQ (Nasdaq)

    Posted on March 29th, 2010 1 comment

    In the last few weeks I’ve become completely liquid in gold, equities, and basically everything. The only stock I’m holding is POM (Pepco). POM is not a day trade for me, its a long term hold which I won’t look at for many years. When an old timer stock pays a 7% dividend in this market, you hold hold hold!

    Now for the market, I’ve sold off everything around the 1175 on the S&P. I really don’t see the market surpassing 1185 until we go back to 1100 first. In fact, I’ve taken a small short position on QQQQ (Nasdaq index). If the market continues to move up, I’ll continue to build my SMALL short on QQQQ while I wait for a correction. It’s important to mention that my overall status is still a bull. The only reason why I’m shorting at this point is because I’m looking for a 50-75 point correction, nothing more. There is a small chance that we can go up to 1220 on the S&P and face a 100 point correction, but I find that highly unlikely. My bet is at 1175-85.

    Happy trading everyone!

  • Economic Predictions for 2010

    Posted on February 18th, 2010 No comments

    After a stellar recorded year for 2009, it’s time to make my predictions for 2010. The volatility we saw in the previous two years is going to dramatically slow down. Economic regulations will come into play and stability will come into the markets. We may see some volatility within the commodity and forex markets, but don’t expect the DOW and S&P to move all that much. Here are my predictions for 2010

    • S&P will be range bound, between 1025 and 1250. We definitely won’t past 1250. I believe our low will be 1050 precisely. If we fall below, buy buy buy!
    • Companies that profit and have cash will surge. Companies without the cash are going to get slaughtered. Expect a lot of volatility in the micro perspective of the stock market, but on the macro perspective the index will be range bound.
    • Blue chip companies like GE, POM will have a banner years.
    • I’m expecting Gold to continue towards $1500-$2000 this year.
    • The banking sector will strengthen in the later half of the year with companies like Bank of America leading the charge. I like Citigroup as well.

    Overall, this can be a great year for many of us as long as we stick to the right sectors at the right time. I wish everyone luck in their trading!

  • Gold is off to the Races!

    Posted on September 3rd, 2009 No comments

    What a great couple of days!!┬áIf you listend to my advice before this breakout, you should be fairly happy today. Gold broke the upper trendline on the weekly and daily chart and exploded. Before we break $1000 I’m looking for a pull back to the $985 range, and possibly as low as $975 but that is unlikely. The minute we see $985 I will be loading up on various gold miners and gold ETF’s. The following is what I have my eyes on:

    1. Yamana Gold – Ticker AUY

    2. New Gold – Ticker NGD

    3. Gold ETF’s = HGU.TO & GDX & GLD

    You can also expect Silver to follow a similar pattern to Gold, so you can also load up on the silver ETF SLV. Good luck trading everyone!