we all love mom and pop ‘investors’

pretty much that’s the summary. we all love mom and pop investors right. LOL.

machine’s love them. algo’s love them extremely well. why? because they are the one to buy at top from machine’s and sell at bottom back to the machine’s.

not only that mom and pop are doing this big time from 2005 till now. i guess the 2000 dot com crash has scared the hell out of mom and pop LOL. but they cannot stay out of market, so they ALWAYS buy high and sell low. ALWAYS. 100% guranteed. and once they do that they shout and yell at the stock market LOL.

let see some charts.

SPLK – you got to love this bad boy. gotta love it. any thing low 39 buy. mid 38 buy more and sell back at high 39 or high 40 and wait. repeat and rinse till next earnings. i got got in a  bad trade in ADBE and could not pull this off. but this bad boy has excellent nice chart on verge of breakout.

AAPL – this is rotten to the core. badly rotten. not badly rotten. nasty rotten. not nasty rotten, sick rotten. charts are completely smashed. DO NOT GO near it. if they miss (which i think they will this time) and tell iphone grew 5% or so, they will take the stock to 7 or 8 times earnings making it 320 to 360 or worse 280 to 340 range stock.

CRM – the dip was excellent day trade at 161, but you gotta sell any rip. i need to get back 170 with volume before i can buy dips in this. stay away or else.

GWRE – 36 held nicely. charts are healthy but it is a thin stock so only deep bids like a dollar or 2 something like that you should buy.

BRCM – the machine’s don’t leave this wifi guy. do they? excellent day trade vehicle. it is below 34 and hence below 50dma. but all dips are buys and all rips are sells. from 38\4.9 to 32.2 it has lost nearly 6% or so. 6% is a huge move for this little boy and so you can trade this with confidence.

GOOG – looks broken to me. but i wont rule out a fast recoup of 50dma. i would avoid this till earnings as mom and pop will be eager to sell this in mid 600 if earnings is weak LOL.

FFIV – DO NOT TOUCH it. last qtr was iffy. stock went to 80 with 13 point or so gap down. machine’s got lucky and ran this up to 105 and gave it to mom and pop and now it is 72. there is no support till 60 and i wont go near this at all.

RVBD – broken completely. single digit looms big time.

NKE – cmon shoe guy. all dips’ in 58’s are buy and all rips are sell. it had massive 58 to 60 volume and so stock should trade in this range nicely. i want to see 60 clear on heavy volume before i buy dips in 59’s and also hold position for a run to 68 to 75.

ADBE – i thought 43.3 will bounce but it got stuck for an hour making me lose 250 bucks. i had a very profitable 1.2k day until this upset me a little. but i am thinking low 43 will hold and it should run back to 44 to 46 range soon.

RAX – completely broken. 40 looms big time and might not survive if it goes and takes that out in volume. even though it finished green, i am not convinced. STAY OUT.

EXPE – for now holding 60 support. i do not have an opinon but looks like 60 support is holding.

BIDU – nasty broken. STAY OUT. vital 85 gone. vital 90 gone. chinese party darkness prevails. i would not touch this broken stock at all. there is a difference between oversold and broken. this one is broken.

KORS – love ya. 41% same store sales growth and they get beaten 20%. cmon. give me a break. from 59 to 55 low volume fall. i expect 59 to be taken out soon. having said that i am not trading this. i need to see 55 taken out in heavy volume before i can buy 55 below dips.

FB – what the hell is going on. i thought this is a goner with 20 parabolic move correction is coming but machine’s are bidding this up. interesting to watch. i am not trading this at all.

HUM – looks like nice dip below 80 has come. i want to see 80 repeatedly hold before i buy this and allow it to run into 90 to 100.

GS – i had no money to pull the trigger. at 140 it is a BUY. it has lost completely 18 points for no reason and has last almost all of earnings run. oversold coming in today and machine’s knew that and they got and hit the home run!! 142/143 should hold. i am expecting a run into high 140 easily.

LNKD – what a leader. all dips are buys. i pulled in the gun for around 800 bucks at 170 and sold at 171.8. but i should have bot and bot all dip’s. this is a leader and after earnings if earnings is bullish will take out 220 area pretty easily.

RHT – broken completely. i am still not sure why machine’s are bidding this. machine’s normally do not do that. it is a matter of time before vital 46 goes out.

WFM – looks broken to me and has lost 20 points. bottom is not until low 70 or even worse at 60. STAY AWAY.

IBM – looks broken to me. earnings loom big time. do not go near this and depending on earnings you can play. i need to see heavy volume 210 take out before i can buy 210 dips. if earnings miss back to 185 to 190 support area.

V – excellent charts. 164 huge support area and it held. i was stopped for a few hundred bucks profit in this but i wish i could have held this for a swing back to 170. having said that even this goes to 160 or 155, it does not matter as charts are very healthy.

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one day selling does not make a summer

that pretty much summarizes today’s action. today selling was intense, but in no way it was high volume and also lot of leaders like $nflx $lnkd $cree are having healthy pull back. as i was reading about ‘mom and pop investors’ story in wsj, i was pretty sure they will buy high and sell low. especially the doctor kind of folks who were previewed in wsj. doctors need to focus on medicine properly first rather than stocks LOL.

this type of market is dream for day traders and wastage for investors. note that lots of stock below and out of below list has earnings looming. so buy all dips and sell all rips. if you short, short carefully.

NKE – all dips are buys and all rips are sells. repeat and rinse this till next earnings. in last 2 earnings qtr stock did nothing after earnings bump and expect the same this time. it is holding well the 58 gap.

SPLK – all dips into 39 are buy and sell into 40’s. i expect stock to trade sideways till next qtr. charts are excellent. continuos beat and raise and big data means this stock has few sellers.

GWRE – charts little confused. i would wait for the gap test at 34 to 36 range trading to see how it goes before loading in that region. having said that chart is healthy although lot of questions on the insurance space this company operates in and very few folks know about this thinly traded stock.

V – if a stock moves 15 points in 1 week or so, you sell and watch the comedy of it coming back to same price and buying. my gut is that 165 (a dip to 163/2) should hold. this leader is a buy carefully on all dips.

BRCM – man they are machining this innocent wifi guy every day. once 34 broke i stayed away. although i bot 2k and was stopped out for 90 dollar loss. i think this should trade above 34 and any dip into 32 is a tradable one.

LNKD – this leader charts have been superb. it was 120 on ipo day and did nothing for 2 years before finally breaking out to 150. then the day after earnings it was 158 before climbing to 186. now lost 20 points and in a nice zone of 165 which means it has barely gone up after the huge earnings volume. this leader falls for one day that too in average volume and everybody is bearish LOL.

YUM – the time to buy this was 60 and sell was 70 LOL. the mom and pop do it reverse. they buy at 70 and sell at 60. today volume was twice so be careful.

RHT – i have no idea on earth why this traded green after earnings. weak revenue/weak guidance means this super high p/e stock has to trade not bullish but bearish. 46 support won’t stand i think on this.

VMW – this chart is ugly like aapl. avoid this and looks like 70 re-test is coming on.

CRM –  they buy this at 185 and sell at 167 right. once it broke 175 bullish area, the reverse was expected. i am expecting 170 support to come back soon.

CREE – was 31 3 months back and went 58. that is a lot. this kind of parabolism should be treated carefully. i am expecting 50 support on this leader soon. but wont be surprised if they gap fill to 45.68 also.

GS – 124 to 158 in 3 months. you book the profit on parabolism. this is very close to 140 support and my guess is that 140 to 142 support should hold unless bad news comes specifically about this company.

AAPL  – ordered 3rd gen ipad for 379 in apple store. sadly ipad has no margin for apple. chart is like shit on this. avoid big time. doug kass buys and sells but the charts does not care about dougie. does it?

KORS – they told if 55 crashes it will go 40 to 45 or 45 to 50. this leader on stellar earnings has been sold off on the back of very nasty, ill-timed SPO. i am all for insider selling. insiders can sell but they have to maintain growth which the mgmt of kors has been doing in a stellar way. at 70% growth and 130% eps blow out, this stock down 20%!! who is stupid. the market or me? charts has excellent support at 55. it doubled after ipo to 50 and in last 1 year stuck completely on the back of 2 weird SPO. with SPO cloud now gone and earnings story intact, expect rebound. i would wait for HUGE volume of 55 clear first.

NFLX – on earnings day it gapped a.h to 140. i though i can get tomorrow morning like 128. but it opened 145 and closed 150 and did not stop and went to 195 before coming to 180 or and then 197 and now 169 breaking vital 175 and 170 area. this parabolism is NOT called for. i would wait for 170 support to come in and hold repeatedly. if not this stock is danger of rolling over and going to 150 support and guess what will still be 50% up from 100 earnings day. i will take 50% any day LOL.

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april 1st summary

LNKD – was trading 177 to 180 at open before selling kicked in and volume was light throughout. panic set once it reached low 172. this is a good support area and as expected bounced back to high 173/close to 174. i expect more consolidation with low 170’s a buy and high 170’s/low 180’s a sell till earnings.

AAPL – charts are getting nastier and nastier. 420 HUGE support area and looks like will be taken out before April 23rd earnings. 360 looms big time if 420 is taken out in volume. stay away. market has changed from NBA to ABA. unbelievable but true.

KORS – my favorite growth stock. block buster earnings for 4 qtrs and stock gets no respect. charts are getting bad. 55 huge support and i expect it to hold. low 55 is the 3rd time it is coming ever since the stupid SPO was announced by the company.

BRCM – the super duper day trading stock. buy all dips in low 34 and sell in high 34. if it goes 33 average and sell all at high 34’s/low 35. repeat/rinse for next 10 years just like last 10 years. this stock has been machine-ed completely. below 34.1 it gave good entry for day trade/swing trade and also into 50 dma.

NKE – huge volume on earnings day from 58 to 60 and after that hedgies have been fading this. i am thinking 58 support should hold. if not there is a big gap till 54. all rips are sells in this until 60 is taken out in volume.

V – the forever buy/hold stock. went in nice volume from 160 to 170.9. i think it should trade for a while between 165 to 170. today action was healthy one and allow it to fall into 165 before loading up if you are bullish. i think 15+ points in a week is too fast and stock can pull back all way to 160 which will be good entry point into strong support.

GS – has been falling and charts messy ever since it broke the 155 to 158 uptrend. good support in 140 and huge support in low 130. watch this and buy only on support although i am thinking 144 to 146 should hold.

MS – same like GS and now getting into earnings gap. put on watch list.

RHT  – i have no idea why revenue miss and reduced guidance was bullish on earnings day. agreed if you were brave and bot 43/44 area you can hold and sell anywhere from 46 to 50. but i had no clue why folks were buying in 49/50 on thursday. i am bearish on charts/earnings on this and although i have no price target i am thinking 46 crucial support might be taken out soon.

HUM, UNH – amazing. analysis shortly. both had stellar earnings. they beat it on rate rumors and now zooom…..amazing. that is why earnings is essential to your analysis/charts/buy,sell/etc.

SPLK – some hedge fund guy told it is a short and it fell from 36 to 25 couple of months back. ever since then charts have been superb. it is now threatening to take out low 40’s easily and move to high 40’s.

GWRE – i have been trading this since 30 and is very volatile and very very thin. today my bid was 36.25 but never came and i was surprised to see the strength on it today as rest of market was selling off. this stock is buy on dips with news on the background as very very little news is available on this sector or on the stock.

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