TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
This is just getting silly!
Look at the ridiculous and FAKE move up that began BEFORE the Fed announcement at 2pm that was completely reversed by 3pm with, as usual, twice as much down volume as up volume during the hour. There, in a nutshell, is what the entire market has been doing since we bailed on it in late March.
Don’t get me wrong, we’re having an absolute blast taking advantage of all this blatant market manipulation but, come on – can we ever get back to reality, where it matters how much money companies are making and what sort of return on investment they offer?
I’m back one short /TF at 1,257.50 but not a lot of conviction. Dollar at 95.72, so not seen as easy by the currency traders.
This morning we flipped long on /TF at 1,252.50, which was good for a $500 per contract gain from our short and now we’re back to flat at 1,255, which was good for a $250 per contract gain from our long. Even better, the long trade idea we had on Gasoline Futures (/RB) in Tuesday’s Live Trading Webinar (replay here) hit our goaaaaaaaaaaaaaaaaaaallllllllllllll at $2.06 this morning and that was good for $2,520 per contract – not bad for a free Webinar pick!
Don’t worry, for those of you too cheap to subscribe to one of our Membership packages, our next Free Webinar is scheduled for June 24th – I’m sure we’ll have another good pick for you then!
Speaking of economies that are burning, we’ll be looking for a short entry on China (FXI) this morning as their PMI was negative for the 3rd consecutive month (and 5 out of 6) DESPITE massive stimulus. We got burned shorting FXI last month and we’ve been looking for another entry.
Aside from the bearish economic macros in China, we had Hanergy Thin Film Power(OTCPK:HNGSF) dropping 47% yesterday, erasing $19Bn if market value before trading was suspended and now Goldin Financial AND Goldin Properties fell 60% each this morning. This simply illustrates my point that the valuations in China (and a lot of other places) are a complete and utter joke. You can’t look at a $38 BILLION company like Hanergy and watch it drop 47% in a day and still believe ALL the other stocks are fine. This kind of stuff is what happens when the whole market is in a late-stage bubble.
