Friday, September 24, 2010

Bookkeeping: Stopped Out of Plantronics (PLT) Short

This one did not even last 24 hours.  Plantronics (PLT) just broke over its July highs which was my stop out level, so I am out with roughly a 2.5% loss.  The tidal wave continues to wash over....only 2 more shorts left to be crushed.

Just as an aside if you want to fade all my incorrect moves.  If the S&P 500 jumps over 1150 I plan to get long index instruments, with intention to sell either into the close and/or on the Monday morning gap up. (then again why sell at all!??) On most days now, all the ramp happens in premarket, then in the first hour or so... then the market goes sideways in a very small range for 4-5 hours (today is a great example) as HFT computers trade amongst each other, than there is a flurry of movement at the end of the day.  So if that end of day spike occurs it should be starting in about an hour or 90 minutes.

The schedule for next week:

Monday: Monday morning gap up, M&A Monday, Mutual Fund Monday, Hewlett Packard buys Someone Monday, China's Miracle of 10% growth with Little inflation Economic Report Monday
Tuesday: Fed POMO operation flooding the market with liquidity mid morning
Wednesday: maybe a 0.2% selloff
Thursday: Fed POMO operation flooding the market with liquidity mid morning

There are no major economic reports for most of next week and really even if there were who cares.  U.S. data no longer matters.  If it's good we buy stocks; if it's bad we buy stocks because it means more QE.

Thursday is the end of the month and with this being the 13th? 12th best month in the history of the market since 1962, the last thing you want to show on your books is that you were not holding Amazon or Netflix the whole time right?  So your job is to trick your shareholders if you are a fine gentleman of Wall Street by stuffing your position sheet with "the hot names".  That way Joe 6Pack can look at his end of quarter fund statement and say "I knew he had Apple the whole quarter... not sure why the fund lagged the market considering he owned 28 of the top 32 stocks.... hmmm ... seems to happen every quarter."   So the market needs to be goosed up next week as people like me who missed the back half of the rally have to show all the "cool" names on their books for their Sep 30th disclosure repot.  (sshhh it's called window dressing - don't tell Joe 6Pack)  Boo yah.


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