While I still hold the belief that our US markets are headed another 5% lower at the least fulfilling my +10% correction thesis blogged about on May 22nd, there are some names that stand a chance to head higher even as the market treads lower. You see my ladies and gents, the market, although it can act like an elevator at times on the way down, can spend many days in between just hovering up and down giving everyone the illusion that markets are stabilizing and about to head back up. Then right when everyone least expects it, leading names get hammered and everyone finds themselves getting stopped out of their positions.
While I hold my degrees in shorting issues just as comfortably I can go long them, it is important at times like this to be taking the short side of the market on names without hesitation. The alpha is important at times like this or just completely get out and be as nimble as possible on the long side. Once again I will say some names that I am currently short, profiting from and expecting larger gains in the following weeks. $NFLX $PAMT $RVLT $AMRI $HIMX are all names I am short. I have a small short in $OWW mainly because I'm paranoid that someone might buy them out and I made enough long it. $UNXL short was fun as I found $15 a great area to cover almost 3/4th of my shares and leave 1/4th for under $10.
Maybe you don't have the buying power or risk tolerance to short so your always looking for something to go long. I've explained many times that buying names in a panicky down market is one of the toughest trades but can be very rewarding as these are the times when the largest of surprise moves occur. Why? Because action junkies and daytraders lose on their stupid overleveraged buy the dip penny scalp daytrades and they need to make back their money before end of the day is over and they wind up jumping into any name as long as there is volume and its up a lottery ticket % move on the day. This same name probably keeps popping up on their stupid overpriced scanners. Then they can't take it anymore and start jumping in and out every 5 min until that final blow off top occurs that send the issue down 20% off its highs on the day but comes back up to close 1 - 3% below its intraday high. Then the next day a blow off top will occur and then the real bag holding will begin as yesterday's daytraders become tomorrows bagholders. Here is my predictive chart on Celsion Corp $CLSN
MY SILVER THOUGHTS
Silver is a pretty low risk trade considering that longs haven't been given a break in this stock for over 9 laborious months. But I am going to caution you right now on the possibility of silver and I want you to understand this strategy exactly! Silver is at a point where it's either going to panic one last time below $20 and become the BUY OF A LIFETIME at around $16 - $18 or this $21 is going to be long cyclical bottom before a 2nd bottom at $21 will be put in again later in the year maybe even around 2014. So in scenario 1 $SLV would stop you out $20 and then becomes the buy of a life time at around $16 and $18 or $SLV rallies $5-$6 from here making your risk to reward trade profits by 2 1/2 times and possibly hit $28. The fact that I expect the market to pullback gives me more conviction in this silver trade. It acts as a hedge and or an undervalued possibility. But notice that I haven't said to buy GOLD yet. That trade I am not quite interested right now because although it could rally with Silver I think Silver is the safe less money tied up trade to go with. I can give you a pictography of what I think the $SLV chart is going to look like but I think I will explain it for your brains imaginative sake. Picture in your mind a little further sideways action then consecutive rising bars at a non stop pace all the way to $25 - $26 all happening within a 2 weeks, to 3 weeks maximum timeframe.
Rambus $RMBS is a name we purchased today @ $8.07 & $8.10 as TIMESTAMPED on twitter
Rambus $RMBS is in the news a lot and I wouldn't be surprised to find out that its some hedge fund that is manipulating this stock because they want as much of a good fill as possible and they are looking long term with this company. This intraday action is a classic whipsaw , rinse and repeat action to keep daytraders and anyone contemplating a swing position away from buying here. Look how they moved the stock up and down all day in a perfectly timed manner. up in the morning, lunch to mid day walk down, then volume explodes towards the end of the day back over $8.20
I expect a 11.50 target at the very least with $15 being a reasonable possibility.
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