Alchemy Of Trading, LLC

Amazon Monthly 10/23/09

10:42  Monthly Amazon

Beware Of That 10/22/09

2:40  Yesterday we had a late day reversal down, today this. Bird thinks the crow is off his menu now, but I'm not so sure about that, or anything else for that matter.....However, I am fairly sure tht if you read something widely dispersed over the internet like "key reversal day", the idea is probably a waste of pixels, and consider going the other way if anything 

2:22  That tick chart got into the market on a DeMark number bullish breakout at around 12:45 PM, so maybe that is something worth exploring

2:17  If the market continues at its current pace since the March lows, it could hit 1,280 on the S&P by the end of the year, said Laszlo Birinyi Jr., president at Birinyi Associates. He shared his market insights. “I'm bullish on this rally," Birinyi told cable financial TV empty suits. "I think most people missed this rally—both professional and retail—that's why there's so much negative sentiment. It's not so much that they're negative—they realize the train has left and they're not on it."

He really did say that today on cable financial TV

 

2:15  Currencies and Futures Updated -- Right Sidebar

2:10  Heartless, cold-blooded killer, these markets.....also false break-prone today....until now?

2:00  Final Laps

 

1:17  Significant divergences used to be very important, but now everyone is Tweeting, Twittering, Tweaking and whatever, about this, that, and the other thing. Anymore I think of going the other way many times. The internet is great, but it's creating problems of its own. How do people keep up with all the information flow? It's too much, all these different sites posting things every second. It becomes a distraction from price action in my view....this is why the so-called "key reversal" yesterday, for example, has so little meaning

1:05  Breadth on NYSE is +100......(-300) on Nasdaq

1:03  5 Minute ETFs

1:39  If internals were improving I could see the short-sellers getting wheeled to the embalming room this afternoon, but they're not getting better

 

 Noisy  10/22/2009 11:50 AM

There is so much noise in these markets today, from equities to currencies.

It's tough. I'm glad I have to leave and go get my meds from the pharmacist.

We've got many divergences, but the bottom-line is that stocks are not rolling over like so many bears or underinvested portfolio jockeys expect or want.

Meanwhile, on 10/26 and 10/27 there are the first Fall Seasonal Buys in the S&P 500 and Nasdaq 100 futures respectively. Seaonal trades have been upended lately in Gold and Crude (Sells), so we'll see what late October brings.

Hope you are faring well and see you after lunch.

Stephen

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Excerpt From Alchemy Live! Stream: Watch The VIX 10/21/09

10:37  Regarding VIX, remember that there is a Weekly DeMark Sell TDST at 20.34. Breakouts/breakdowns through weekly VIX TDSTs are uncommon, and a break down through this one has bullish implications

 

'Round Midnight: Cigar Butts 10/19/2009 11:30 PM

 

NEW YORK (MarketWatch) -- Julian Robertson, founder of Tiger Management, said Monday that shares of Intel Corp. and Google Inc. are attractive, given the future prospects of the technology giants. Robertson, one of the most successful hedge-fund managers in history, also said he was concerned about U.S. dependence on China as a source for borrowing. He highlighted overseas currencies, such as the Norwegian krone, as more solid than the U.S. dollar. Speaking at the Value Investing Congress in New York, Robertson said he used to think that a value investment was one that was extremely cheap. Now, the veteran investor reckons a value investment is one where there's a low price relative to the expected earnings that the company will generate over the next several years.

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The concept Robertson is talking about here is exactly analogous to the awakening Buffet experienced......via Charlie Munger.

Buffet discovered that the Ben Graham "cigar butt" concept of buying stocks for less than their net assets per share had only limited use in the market of the 1980's, and moved on to buying franchise stocks like Coke, Gillette, and others.

Apple is clearly not a cigar butt stock, and it made a big move in the after-market to just over $200 or so.

Maybe they'll sell it on the open tomorrow, I don't know.

But there are quite a few stocks that look very good on the charts, and bears must be feeling very deflated this evening.

So take a close look Charts Of Interest, and I'll see you before Tuesday's open.

China Leading Today 10/19/09