call me crazy but I'm going to short this rally
Stock Market Today : July 16th - 20th - Page 8
Long $BAC into earnings after JPM,C,GS,WFC all did better than expected i like BAC to the top of the range at $825
After ‘The Bernank’, You’ve Got to Buy Stocks: Pros QE-3 all but done
“Now, you have to be long stocks,” says trader Brian Kelly after Ben Bernanke concluded his testimony before the Senate. “There is no other choice.”
Kelly as well as many other market pros believe that Fed Chairman Ben Bernanke just telegraphed that QE3 must be factored into all future trades.
“He talked about the second quarter coming in below 2% and he talked about the jobs number failing to improve,” Kelly says. “How much more do you need to hear!"
"We've already had several Fed governors come out and say the mood is changing at the Central Bank. And today, Bernanke all but said as long as the economy continues to get weaker, we're going to be there.”
Kelly like so many other market pros sees the potential of QE3 not as a hint but rather as a series of probabilities. And Kelly as well as other pros believe the probability is higher.
And as the Fed nudges closer, Kelly believes investors need to put money in stocks. That’s in part because once the Fed moves, Kelly doesn’t think they will move subtly.
“Whatever comes along next, it's going to be big,” he says. And you want to be in stocks before it happens.
Trader Guy Adami thinks the technical tell a similar story.
1344 has been a key technical level and it held. It suggests investors are well aware that the Fed is trying to push them into higher risk assets
I have my charts indicating either Friday or Monday will be a reversal day. I'm leaning toward monday. I'm looking for a short position on Monday. Tight stops though.
*Let me rephrase that. Monday could very well be a green day but I'm looking to build a short position on Monday for a down leg of $3-$5 down run on the SPY. I guess we'll find out next week. Not enough upside between now and Friday to go long IMO. Expiration is a big factor in my decision but also because I believe in Monday being a reversal day.
Edited by CPOonfinal - 7/17/12 at 2:05pm