Friday, October 3, 2014

Bounce Bounce Baby!

DEFINITION of 'Dead Cat Bounce' A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce is a small, short-lived recovery in the price of a declining security, such as a stock.

Good morning folks, 
So yesterday we had the Rally Monkey, you can never underestimate the power of the Rally Monkey! It was looking pretty scary for awhile there but the rally monkey came through and we had some decent reversals. 

Today we could have the dead cat bounce. 
I remain in the camp that we probably have more downside however there has been a lot of damage done and stocks like to lure people back in by showing some signs of life. Right now we are looking at a gap open but we do have the jobs report and that could change the market mood. Be careful jumping in and recognize that this could just be a temporary relief rally within a longer term downward move. I am not suggesting that we are entering a full blown bear market but I do think we haven't really seen total capitulation yet. 

Jobs report just out and it was good news looks like the street likes it but keep in mind that good news can actually mean bad news for the fed. If the economy is too strong then the Fed will have to raise rates sooner. 


Stocks on my radar this morning 
FOLD possible continuation day, ERII trendline break testing moving averages after bounce, HALO pr looking for 10 dolla holla, IAG pr could be in play, WAVX PR last night already a long term hold for me, RSH was thrown a life line gapper Be careful , RMTI gapper off good pr look for a setup, BCRX possible continuation, DRTX pr snap back play, MCP continuation, TKMR pr but this one is getting extended, CMRX HOT DAILY Ebola play Fast money pump, 


YDLE IPO 

Update on my HERO swing I added to my position yesterday @ 1.98 bringing down my dollar cost average 

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Today's Markets:
In Asia, Japan +0.3% to 15709. Hong Kong +0.6% to 23065. China closed. India -0.2% to 26568.
In Europe, at midday, London +0.9%. Paris +0.6%. Frankfurt closed.
Futures at 6:20: Dow +0.4%. S&P +0.5%. Nasdaq +0.4%. Crude -0.2% to $90.79. Gold -0.6% to $1207.70.
Ten-year Treasury Yield +1 bps to 2.44%
Best of Success!

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