Friday’s Trading – 9/24/2010

Apple?
On Wednesday night, I began my “XLF Goes Rogue” post by congratulating Steve Grasso, and then pointing out the XLF’s breakdown. Then, Thursday’s daytime episode of CNBC’s “Fast Money“, began by congratulating Grasso and went on to point out the problem with the XLF.

Do I hear an echo?

Grasso also said that his mutual-fund clients couldn’t get enough Apple stock. But maybe they did get enough, because two hours later (at 2:38pm) AAPL stepped into the elevator and pressed the “Hell” button. AAPL, and the rest of the market made what might have been the sharpest plunge of the month – and with strong volume too.

Melissa Lee opened the 5pm episode of “Fast Money” raving about how Apple continues to “defy gravity.” I reckon she didn’t look at the intra-day chart. They then discussed Apple for seven straight minutes without ever mentioning the afternoon plunge. There were some bearish opinions presented, but overall it came across as an infomercial for AAPL.

This all stinks of distribution. I wouldn’t buy Apple here with Larry Kudlow’s money.

New Channel in Town?

The futures are up a couple of points as I write this Thursday night, but they will need to do better to break out of their new downtrend channel (click chart to enlarge):

The blue lines on this 60-minute chart are drawn roughly around the September rally, which may be giving way to the new downtrend channel (red lines).

Block-Busted
I enjoyed seeing Blockbuster file for Chapter 11 bankruptcy. Before the internet, I dreaded going there. They had the worst customer service I have ever seen.

Volcker Goes Nuts
In what appears to be yet another sign of the wheels coming off of the Obama administration, Paul Volcker,

“…scrapped a prepared speech he had planned to deliver at the Federal Reserve Bank of Chicago on Thursday, and instead delivered a blistering, off-the-cuff critique leveled at nearly every corner of the financial system.”

WSJ story here. Here is my favorite quote:

“I’ve heard so many stories about how important derivatives are but there doesn’t seem to be much doubt that the creation of derivatives has far exceeded any pressing need for hedging.”

I’m sure that he’s talking about the banks’ giant CDS casino there.

40 Responses to “Friday’s Trading – 9/24/2010”

  1. george says:

    I’m a Netflix convert. I can now get movies on the iPhone, PC, and Roku for my large screen TV. Plus, I get about 2 dvds per week – all for $10 a month. What’s not to like?

  2. after says:

    spoos up nearly 10, ouch for bears -ng-

    wonder how them spy puts will fare ?

    Hank ? you up yet ? -g-

  3. after says:

    i see aapl pre bid 292 and a bit…

  4. phil says:

    phil says:
    September 23, 2010 at 12:55 pm
    G

    5 waves up from am low

    prepare for another upward blast

    G

    here is your upward blast

    selling SSO premarket cuz it may not last

  5. phil says:

    G

    SOLD sso 39.09 pre market

    bot yest 38.47 and suffered some pain till this am

  6. phil says:

    G

    remember

    the declines are corrective so the trend is still UP

  7. George says:

    p

    Agree… yesterday was a down day in an uptrend. Those inverted hammers usually resolve to the upside.

  8. phil says:

    sold TBT 32.29

  9. phil says:

    NEW HIGH in APPLE

    shorts beware

  10. phil says:

    G

    above 286 the

    APPLE ROCKET continues

    still think it needs a 300 print

  11. phil says:

    G

    APPLE daily boll band @ 297 today

    possible spike thru today??

  12. George says:

    AAPl – $1,000 in its future?

  13. phil says:

    G

    $10,800….

    APPLE same price as DOW INDUSTRIALS ….lol

  14. George says:

    SPY made a 9/36/15 cross but UYG hasn’t. SKF looks like its consolidating.

  15. after says:

    ask on oct 110 spy puts 80 cents…hmm..
    Hank, you up yet ? -g-

  16. George says:

    p

    SPY hit the top of my mystery gap on the daily and is now backing off.

    VIX daily is consolidating.

  17. phil says:

    G

    prob snooze til 2pm

  18. George says:

    Band is winning today unless there is a MOAR. :)

  19. scotty says:

    Phil we gonna retrace at all today or snooze here right into close,havent moved 10 points now in last hour

  20. scotty says:

    G what is MOAR againi

  21. Hank says:

    After, I dumped plenty of SDS last night. In at 29.36 this morning. Bears can dip buy too! Aldo sold 1/3 of PUTs last night and reloaded at same time as SDS 29.36. I’m VERY short with tight stops.

  22. George says:

    Scotty,

    Mother Of All Reversals. :)

  23. after says:

    Hank, i see SDS 29.30 now, your adds look promising, congrats on that…

  24. after says:

    yikes, TLT down over a dollar…

  25. phil says:

    scotty

    we need to blast up thru 1150 now for 3 of 3 up

    otherwise B wave still possible

    i think we blast above 1175 soon

  26. Mitch says:

    Certainly no pikers ’round here.

  27. phil says:

    after

    TLT target is 73 ( not a typo)

    needless to say i am overloaded with TBT

  28. phil says:

    after

    once we overlap tlt 100.40

    i will double down on TBT

  29. Hank says:

    Bounced out of 3/5 of SDS at 29.24. Still in PUTS & QID though not for long if this keeps up. ;)

  30. George says:

    p

    Wake up, it’s 2:00pm. :)

  31. phil says:

    zzzzzzzz

  32. after says:

    Phil that is quite the target for tlt…
    any time frame ?

    Hank that is sure a tight stop !
    debating adding, maybe tza @ 26.80 or lower, that would be an avg down…
    or those s&p puts

    ???

  33. Hank says:

    After, yup I took a stab at a homerun.
    We’ll see if the rest makes me some money today.

  34. phil says:

    after

    no

  35. George says:

    Fake gap filled by SPY on Stockcharts. Slightly above it.

    Two gaps to the downside to fill. Well, three counting todays intraday gap up.

  36. Hank says:

    After, going into the weekend I took off all the added ‘steroid’ positions for a tiny loss. I maybe be dumb, but I’m not crazy:)

  37. Mitch says:

    Have a good weekend folks!

  38. after says:

    i did add tza @ 26.77 near close, avg now 30.35
    happy weeeknd all !