THE TAPE:
DOW +107 (+0.8%)
S&P +5 (+0.4%)
NASDAQ -14 (-0.6%)
RUSSELL +15 (+2.2%)
THE STORY:
There was huge range with week. The DOW whipped around to the tune of 852 points.
Two major reasons sparked the volatility: 1) A global panic sell off was created over MLK day as a result of banking fraud in... you guessed it... France. 2) Jackass cut a major chunk out of the fed funds rate, slashing it by 75 basis points, sending stocks higher. This hasn't been done since Dad was paying 18% on his house in the early 80's.
Some people think that we have hit a bottom in the downtrend. Morons, all of them. The fed meets again next week for their "scheduled rate cut" where we should get another 25 basis points or so. I'm quite convinced that this will disappoint and we will see more selling next week. February will probably see some basing and consolidation... but we will cross that bridge when we get there.
Congratulations for anyone who decided to take the gold (GLD, GDX) trade and made some money over the past week. $1000 is just around the corner. Know it. Own it. We are still waiting on LM, while MYGN broke down last week. After last weeks strength (however mild it was) we have some great entries for shorting the market.
Keep an eye on: BHI, GOOG, CX, SWK, MTB, LTM, LIFC, NILE,
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