For traders with a directional bias, today was quite a FOMC day. We had mostly a slow day leading up to the Fed announcement as one might expect, followed up by a melt up of stocks after the announcement. But, unlike other FOMC days where the market really took off, the market seemed to kind [...]
One thing I have noticed is that many of my RSI 93 candidates are biotech stocks. Today I shorted PSDV at an average price of $5.86. I think it actually makes sense that biotech stocks are often the stocks that go parabolic. First, these stocks generally have a good fundamental story behind them. With drugs, [...]
Tonight’s post will be text only. The trading plan remains unchanged. I’m following my three indicators which include the dollar (via UDN), the Ted spread (3 month LIBOR less three month T-Bills) and LQD (high quality bonds).
Since March, we have seen a weakened dollar, a declining TED spread and a bull run in bonds. My [...]