you better!

just kidding. i'm very much looking forward to seeing your video(s).

EGN broke out today too, and in between cleaning up after my 2 boys (who BOTH have the stomach flu), I was able to get a late-day trade in on it. Thanks Jeff for throwing me that one for my watchlist.

I'm expecting HUGE things for ZUMZ tomorrow. 27% of the float is short and a breakout today on strong volume? Yes, I'm a dork and i learned this from the IIG trade.

G-night folks!

On the new investools toolbox, go to zumz, then click 'financials' on the left side of the page and scroll down to short interest.

by the way, X was just downgraded on valuation. wonder if that will kill this phenomenal run, or if it will dip and recover?

Couldn't sleep at all last night without my nightly video!!!

For the help you give us i guess we can cut you some slack - but throw us another bone! (said with sarchasm!!!)

I hope you're right about the Dow still heading higher. It seems to be consolidating again. There's no Anna Nicole death phenomenon with the markets is there???

I think I'm spotting these patterns better - if now I can just figure out when to enter. Tell me more about this wait until the close to trade.

Is FOXH showing an inverted cup and handle? With earnings close I don't know if it's a good trade.

Gary
Boston

Brett and Jeff,

I looked at ZUMZ and EGN. Perhaps I overanalyze stuff to the point of getting trading peralysis.

I'd shy away from ZUMZ today because it seems to have closed half way between some support and resistance (35 & 38).

EGN I would say had a good day because of the short term seasonal freeze that we're having here in the East. Institutional buyers are non-existant.

What am I missing?

Jeff,

could you explain:
A) what does the Investools "short Interest" information mean (e.g. % Outs, % Float, days)
B) what does this information imply for trades?

Thanks,

Steve

Gary,

Whatever YOU see in a setup is what you should trade. However, what I see in ZUMZ is a breakout above resistance at $36 on tremendous volume. The resistance you reference at $38 or so in my view is not significant since it's never tested it again.

In the larger context, we have an uptrending stock which a month ago broke out of a symmetrical triangle and successfully retested it recently.

I see new support that should hold at $36. if it doesn't, it's an easy low risk exit. If it DOES hold, i see $50 in the stock's future.

Steve,

Let me take a whack at the short interest question. Perhaps if i save jeff some time we'll get more videos!

Basically, this information tells you how many people have shorted the stock. When someone shorts a stock (selling without owning it), they are expecting to buy it back cheaper. When there is a large % of the float shorted, that means there are a lot of people who HAVE to buy the stock back at some point.

When you get a good solid catalyst moving the stock higher, you have the potential for what is called a 'short squeeze', meaning the shorters are getting killed as the stock moves higher and literally trip over themselves buying up the stock, sending it rocketing higher.

Eric gave a great example of a short squeeze on RMBS in 2000 or 2001. the stock doubled in a day. That's not going to happen here, but it's still fuel for a stronger rally.

Hope this info was helpful.

SHLD Sears Holding appears to be breaking out this morning. Up $4 and change.

Joel R.

Yeah, Cramer called SHLD the next Berkshire Hathoway last night. He's been touting SHLD for months and months. Now, sitting right at a significant breakout point, he mysteriously powers it through.

So EGN was looking like a sweet breakout yesterday. I went to grab some options and noticed no, as in zero open interest in the March and just a smattering (technicla term) in the April options with 30-40 cent spreads. I didn't want to own the stock so passed.

I would be interested in any feedback on buying options with so little open interest.

MikeH

Well, i guess my waiting to see if SHLD confirmed above 180 happened thanks to CRAMER. Crazy move so far today, is anybody going to get in today? Should have pulled the trigger at the close yesterday.... td

TD-

I might, but i'd be really excited about some kind of retest. the $5 pop over $180 doesn't scare me at all since the expected move is ginormous.

Anyone trade IRF? Nice follow-through today.

why is MA taking such a hit today..??

Bob R.

Apparently Jeff meant "first thing" Hawaii time.

I am new to the group, I see apple
as starting that slippery slide
to the downside, anyone have thoughts on that? Also garmin looks
like a good play to the upside,
what thinks the peanut gallery.
Mike

I heard somewhere, that once most of the analysts are on board of the bull market, that is the
signal for the top, are most of the anylists on board of this bull run?

Just checking on my lunch break to see the new video...

...with the way the market is sliding today there's plenty to be consumed with.

I guess 2 down days are bound to catch up to my uptrending stocks.

Gary

Happy Friday Everyone!

Could someone analyze TIE for me? It seems that it is forming a cup and handle - but I'm not sure. Thanks all!!

Jodi :o)

Happy Friday, Everyone!

It's days like this that test my trading rules and discipline.

Although I miss Jeff, the blog has been very informative today. Thanks to everyone who has contributed.

Amy

Anyone playing the downside of indicies? SPX has been $$$$$$. Very nice payoff.

Sarah

speaking for myself, I got killed today..

Bob R

Got a nice head and shoulders today on Bear Stearns BSC and a double top on NYX.

I should have waited for the end of the day to trade SHLD.

It's a "sky is falling" end to the week.

Have a good weekend everyone.

Joel R.

Guess I was getting cocky. I thought I had this whole options thing figured out. Up 20% in one week.... down 15% today. We're getting HAMMERED!!!
BOught one MA contract because I thought earnings were going to be good. They creamed the analysts expectations and it's down 12%. ICE is getting hammered. All the exchanges are getting creamed. THE SKY IS FALLING, THE SKY IS FALLING! Sheesh.
Like you said Amy, it's days like this that test your trading rules. To heck with discipline, I'm going to reek havok on a snowman.
This'll be a tough one to put behind us for the weekend.
Chris and Catherine

The day's not over yet.

Let's not forget we're still in a bull market and the last hour is the most important.

I am sticking to my rules, support and resistance, etc...as much as today makes me sick. In the past I would get out, confirm my losses, only to see my trades rally back in a week or so. Talk today about interest rate hikes reaked havoc...in the market and in my account....

A red ticker tape parade today...ouch..

Bob R.