Good Morning All

Another lack luster day in the markets brings us up to the start of earnings season next week. The OTC Hi Lo index reversed down one day after the OTC Bullish Percent reversed down. On Point & Figure we now have the 3 main indicators the NYSE OTC & OPTI all in O's along with the SPX NDX and OTC Hi Low, this is not good. We are not thinking long here, we are not placing funds at risk on the long swing side either. If this pattern completes itself when the BP's are about in mid level say around 50% off their highs, then the moves lower toward "oversold" or what i call the Green Zone below 30% can be a real troublesome event for those that have no clue about what is going on here. So we are on the sidelines with our cash, we are not buying for the "long haul" we are patiently going to let this whole next move unfold before we dive into the abyss. Over the weekend for my Sunday newsletter I'll start including stocks that have earnings next week, these stock "could" begin a short run up (market willing) into those dates. We would want to trade long only intraday going to cash of course at night. We never hold any stocks over their earnings report EVER! They usually run up ahead of the report and one day prior we step aside. Not sure if this is going to be the case during this quarter but it's a 70% shot it will. The street get's this "hope springs eternal" mood and we can take advantage of this action for the next 2 months. At the very least volume will be a lot better & bigger so we can trade. Yesterday we identified MS & JPM as the long side trades MS was wonderful. I would ask you all do not trade SKF or QID they are not good enough to make money, way to wild for me! Ok have a nice weekend all see you in the room.

Jerry & Inna(who closed 2 deals yesterday)

Good Morning All

Like i said yesterday in this column "i expected the other index's to follow the SPX lower" and that is exactly what has happened. All the other index's gave sell signals yesterday almost simultaneously and this is not a good thing going forward. Also the NYSE Bullish Percent was down 4% as well. Most of the main indicators i watch now are rolling over and pointing down all except the Hi Lo indexes. Once they join the group things will get a lot worse near the end of this correction. These corrections take time, nothing is going to happen overnight, we'll have a lot of fits and starts as we begin earnings season next week. The volatility in the daily markets movements will increase dramatically as well, so that's good for us day traders. I am going to compile a list of earnings plays each week thru this time frame for us to concentrate on ahead of their respective reports. In most markets the stocks actually run UP into their dates and this is usually a good safe trade. It will remain to be seen if it works this time or not, however we never hold stocks thru earnings ever!. The under the sheets problem is the economy it's not moving in the right direction, it's weak, not creating new jobs as offered, the stimulus is lagging behind here keeping the recovery from moving forward. I told you all right here weeks ago that interest rates were too high in a weakening economic picture and that has triggered a sell signal on the 10 year TNX it broke a triple bottom yesterday meaning rates are going lower which is good. I also told you 2 weeks ago to short Crude! You traders with the power to push buttons you could have missed a fabulous trade. If you do not have access to a commodity trade there are ETF's we can all use for this type of action. Go to Ishares.com and check out all the great trading vehicles to work the markets when i make these type of calls. The markets are a bit oversold here and due for a bounce, this bounce is a short. So wait for a rally back up into overhead R then short the market using whatever you feel comfortable using. The RUT is the weakest link right now and so is the SPX! So be ready for a negative time frame in the next 1-2 weeks. Earnings season could change this, but we'll wait and see what things look like next week.

I'll be in the room till 11.30 today i have a closing at 1.00

See you all later

Jerry & Inna

Good Morning All

After yesterdays negative session what with the SPX giving a serious sell signal with all the "other" major index's probably going to do the same thing, the charts are showing me we have a lot further to fall now. While we might get a 1-2 day rally at any time it's my contention they're a short! The real problem is in the Bullish Percent charts since they're almost to an indicator "all" in O's shortly. You all know how i feel about BP's in SYNC! Once they all reverse down, of course if they do, then we're going to get a serious push lower on the charts down toward the "bottom of the 10 week trading bands" on Point & Figure. This area is NOT the March 2009 lows folks. Not saying it's out of the question to re test that 667 SPX area this year based on the current very weak economic picture out there and getting worse not better despite the stimulus package. This for me is not good. The charts are beginning to show what the street is thinking as we move thru this year. It truly was easy to see the potential for a correction off the recent overbought charts and BP's, not a big deal. But now it's the texture of this next move that could change the dynamics of the whole street's sentiment and perception. Remember folks the reason we rallied back up was all the "good news" related to the Admin & the FED's actions back then. Now it looks like even the most optimistic scenario does not look promising at all. This is not good for investors and for this very moment in time we're not placing one nickle in this market on the long side. However the short side is becoming more and more interesting for a swing short set up. It seems to me after a short relief rally today or tomorrow we could initiate a short position on the SPX using either a short SSO or a long SDS. The RUT 2000 is even weaker so we could use those etf's too IWM or UWM to short either ETF. If the Hi Lo index's for both the NYSE & OTC rollover here all bets on the long side are off the table, you understand this folks? Forget it! I'll keep you posted for sure day to day because things are changing daily now. Keep your powder dry, keep cash on the sidelines for now. There's a lot going on right now in the markets so it will take some time to decipher what the next best course of action would be to make a buck.

See you all in the room

Jerry & Inna

Good Morning All

This morning at 8.30 am eastern we get the all important employment report pundits are expecting -400,000-500,000 or so and a boost toward 10%. I do not know what this number is going to be today but we certainly have not started to add jobs yet. The stimulus package when it hits the street in the next few months "should" stop this negative number to a more manageable one albeit without much growth just yet. In my small corner of the world what with Inna as a Realtor she is seeing signs in her own small office of 30 agents a nice pick up in sales & listings and settlements just in the last 30 days. We are seeing a lot of dumpsters on the streets of Philly telling us rehabs and repairs are moving now which means some slowing in the "loss of jobs" maybe not any real adding of more jobs. But at least even in this corner of the universe there are some signs of stabilization in the economy if this is any real indication of what is happening right now. We all know the Jobs report is lagging, but it still gives us a look into what the country is doing right now. In any case i told you yesterday the ball is in the BULLS court, they took control all day basically and ran the BP's up on "all" the indicators i watch each day. We can certainly see a slowing of the downward pressures but unless the funds step up to the plate we're not going anywhere too fast. So everyone today is the end of the week for the markets, we are closed Friday for the 4th holiday, take off and re charge the batteries enjoy the family while you can, because my summer rally is coming down the pike soon.

Please send my regards to you and yours, Happy 4th of July, if you need me forget it! I'll be on the beach in Margate NJ, vegetating & people watching!

See you late Monday

Jerry & Inna

Good Morning All

Yesterday was another very slow very quiet consolidation day, there were NO winners that's for sure. I checked this morning all the major index charts all the major BP's everything stood still. Remember the Day the Earth Stood Still? Well yesterday the markets were a bit comatose. However the bears did not win that day and this correction is getting long in the tooth, so the onus is on us BULLS! We must take the initiative and rock these markets higher right now. If we can regain control we could re test the 52 week highs again very quickly------I HOPE? I use the word quickly facetiously since this is the kind of market that teaches us "all" humility and patience. Not a bad thing folks, but for those of you that continue to flip back and forth with no idea of what you're doing can only lose money. Just pick 1-2 stocks that show relative strength(RS) and trade them up and down all day long. Instead of jumping to 5-6 different stocks during the day. This is senseless trading it does not work. Look we could have traded WFC 10 times yesterday for scalps of 7-8-9 cents if you check the chart you can see that it was playing Ping-Pong all day long. For me this is ok to do right now since we have little real action in the markets. I hope that ends today with BOM & Quarter Funds buying that could propel us higher on good volume before it closes down by Friday for the 4th. Again i am going to take off 4 days staring early Friday all the way thru Monday. This rest & refresh time frame for me is important to recharge the batteries. Same for you, let's work hard each day together to try to just make a days pay. I see the right stocks but we all must just have super cool patience right now. Let me remind you all that this Friday we have the all important employment report that could rock the street! I am counting on it Watch 8600 for the 3 box reversal back up for the DJIA, 1880 a new 52 week highs with 1860 right at the double top for the NASD, and we got that 930 double top buy signal on the SPX so let's see if we can get some action today.

See you all in the room

Jerry & Inna

Good Morning All

The markets are acting just about the way i thought they would during this time frame. I still think we could get another leg up here because the bears have not shown good strength from their side of the street. Bulls continue to push things higher, albeit slowly, and with not too much conviction yet. It's like "who wants the ball"! There is some slowing of the decline of decent of the bullish percents (BP's) on P&F and this is a good sign. They are not close to reversing back up yet but if we get 2-3 days of big 90% rallies type days they will turn back up for my summer rally. It's my opinion the markets have fulfilled the recent pull back to the middle of the 10 week trading band, and this in the current market trend which is UP! Let's not forget folks we have rallied up here since the March 12th lows non stop. This looks and feels like the "pause that refreshes" so far but trust me i do not "trust" anything out there on the street. We had some selected buy signals yesterday on some of the major index charts and that's good, so all and all we are closing out the end of the quarter today with the first 3 days of July heading into July 4th weekend with a bullish bent, i think we'll look for solid longs here like yesterday. Boy i had 2 fantastic calls in the room MS & WFC i am reading the charts & tape better then ever before, i see things that are showing me what to buy and where good entries are for us to take that trade. But because of my scalping mentality i have to slow down here and show much more patience. We can all see how rewarding this can be as shown by both those trades yesterday. I mean WFC at my entry popped 5-10 minutes later for almost 25-30 cents straight up when the futures took off just like i thought they would. But alas i sold too soon! That's ok some times you have to re adjust your thought process and make the changes necessary to make a solid days pay. That is exactly what makes a good trader. Be nimble, changeable and willing to recognize what the latest markets telling us. Remember we do not predict folks, speculators lose money, we just follow what we see not what we think and react. Yesterday i pm'd some traders using terrible stocks to trade, told them to dump those and buy WFC or MS! Guess what? They did and all made money. Hey i'm in this room to make money for me and you, remember that please, Stock selection is so important. The financials at least have "some" volume to them intraday. Anyway we get some eco reports today so we'll see what the street has in store for us as well. One more imprtant thing happened yesterday, the VIX index broke below 26 and that means we're going higher!

See you all in the room

Jerry & Inna

Good Morning All

The Point & Figure Bullish Percents(BP's) held steady yesterday and some actually reversed back up. It looks like the possible downward momentum on these indicators might be slowing somewhat. What we need now is some serious follow thru UP days and they all could reverse back up. To help this along now we have a time frame that "could" produce such an event. It's called end of quarter "Window Dressing" which of course we all know and love a lot Fund Managers sell the doggies and buy new fresh faces for their clients usually stocks that are flying higher during this correction. Tech will lead them to the promised land for sure. AAPL-AMZN-RIMM etc stocks like that should give them some hope for a profit at some point during the year. However we are also nearing a very important economic number. Next Friday we get the June employment report and let me say right now "if" this shows a good number then i think this correction/pullback is over! OTOH if it's a "bad" number lookout below! Keep fresh in your minds eye 885 SPX that is the key downside break that would not be good. At the same time a print of 930 breaks a double top on the chart and sets up another shot at the 52 week highs again. We of course being good "Piffers" we wait and will not anticipate the results. You need to understand that if you leap before the number you usually get killed! So be patient right? This is not a game folks, we're not at Vegas Crap Tables here, there is money at risk, so why risk it? Let the markets show us the money first then we'll make a good decision to follow or not. Today could be very interesting in that yesterday was actually very strong underneath the sheets, i want to see if it follows thru today. So sit back and relax, have a great restful weekend, let's hope some volume reemerges next week.

Be well and send our regards

Jerry & Inna