CPHD still holding well. Price went down on lower volume and closed right on the 9 EMA. In the next few days it needs to climb above $33.36 otherwise there is no more steam.

Entered into TNE on Jan 25 @ $23.05. I liked this because of the high volume high at $25. it broke out of the down trend on Jan 8 on big volume then there was a brief sell of for profit taking but there is interest in buyers for this.

Bought ISRG @ $267.00. MACD and Stochastic are turning up. The selling volume was low on Friday which is positive. Looking for this to climb up to $289 which is the 50 EMA. Earnings are this week so it might get volatile.

Yesterday I mentioned were in a counter trend rally. I am looking for the QQQQ to test $46.70 then be careful but I think we will climb up to 49.11 area and then a drop. Mr Market is very deviant.

All trades are in the green except AAPL . ANO did a nice climb up 12% today since buying 2 days ago, still looking strong.

I placed an order to AGU this morning but did not get filled. It gapped up and closed 7.56%.

We got the counter trend rally and I entered this morning into the following trades:

Bought FXI at $146.00
Bought ISRG at $ 267.00
Bought DDM at $72.00

Bought ANO at $3.19 (sorry this I bought yesterday)
Bought AAPL at $139.09 (sorry this I bought yesterday)

Note: These are short term for a few days I suspect.

The market did a massive correction today especially the DOW almost a 600 point spread from the low to high on BIG volume. This is still a bear market but were in a short bounce. Below is the QQQQ on a weekly. As you can see the price is now touching the lower trend line for the past 3 years. We retested the week of March 5, 2007 - went under then over which is good. We should see an upward bounce for at least a week or two….or at least until the FMOC meeting next week. The street says they will cut rates by about 75 points again.

The QQQQ may bounce up to $46-$48. Then short it again.

The market looked like it would have tanked down 700 points for the Dow but was stopped by Ben giving us a 75 basis point cut. it would have been best for the market to go down further and to correct properly.

I sold my short positions in TWM, QID, SKF for very nice profitable trades.

I expect we get a bounce but I am not willing to go long in the indexes, but I am in certain gold stocks. I know I sold yesterday but I liked the turnaround action by ABX so  I entered back at $48.44. I also will enter into AEM in the morning.

CPHD is holding well and did a great bounce today, this is the kind of price action I was expecting. Now I want to see this push past $32.33 swing high.

The blogosphere is buzzing with lots of posts about the Asian markets dropping especially the Hang Seng index in Hong Kong down -6%. Look at what’s on Yahoo! Finance. Yikes as I’m writing the index is still selling off now down -7.30%. That is huge for a broad index but Asia was due for a massive correction. The US markets look like they will fall at least 4 to 6% also in the morning.

Is this going to be a blow off bottom?

I thinks it’s too early to confirm that. Like I said the financial markets are in big trouble and need help. Look at Citibank and Countrywide.

I have sold a few gold miner stocks like RGLD, ABX and continue to hold the SKF, TWM and QID to play the short side of the Financial ETF XLF, Russell 2000 and QQQQ. I may sell my shorts tomorrow if the volume is massive.

On Tuesday Jan 22 I think we will see the follow:
SKF (Friday closed at $129.65) to $140
QID ($48.30) may hit $52
TWM ($90) to $96

On Friday I got into CPHD at  $30.05.The set up is strong but the overall market may take this down. I have my stop in place.
Also got into HOKU at $9.20. The volume was bone dry meaning the sellers were gone….hopefully….let’s see.

If you are not a trader then stay in cash and look to buy in about 2 weeks as we need some confirmation of support. Look to buy the gold miners (AEM, GFI, ABX, GSS, GFI, RGLD, GOLD) and gold (GLD).

Going long on CPHD in the morning. This stock is holding very well considering the down day today. The technicals look strong and a bullish flag is forming. I’ll see if I can pick up some shares under $30.

Buying more QID which is the ultrashort QQQQ. This looks like it wants to run up to $52.

What a down day…especially INTC closing down -14% to $19.46 with disappointing earnings Also Asia market plunged down about -5%. I was really expecting a bigger bounce in the US market with the bad news from Citibank yesterday and the market was up. I missed getting into the SKF by $1 and could have gotten a $7 profit…augh!!!!

Anyway I dont like the markets right now so I’m closing positions in WFR, AGU, ABX and tight stops in my gold stocks like GSS, GFI, RGLD.

The market wants to test the August 16, 2007 lows which is the nearest high volume day. But the SPY has broken that and is testing the low on March 14. Currently volume today was not higher. We may see a bounce next week.

Again any signs of a bounce is a good time to short the market.

Apple is having its Macworld Expo. Why am I telling you this? Well AAPL has been on a tear the past year and dipped down to an attractive entry price. Apple earnings are on Jan 22. I would pick some shares between $160 - 170 but let’s wait for what news Steve Jobs has to say this week.

It’s also options expiration week on Friday Jan 18th which means some volatility. Are we going to get more of a bounce or just fall? Friday’s action was not very good for the broad markets. I might buy a small position in the TWM on Monday just to hedge. I’m current in the QID also which is the Ultrashort QQQQ.

I’m profitable on the 4 new positions I made on Friday expect AGU +3%, WFR +0.9%, NYX +5%,  LFC  -3%.

Still riding the gold stocks with ABX, GFI, GSS, RGLD  I will close these positions and go short if I see any more nervousnesses from the market. Gold is a good sector to trade in a bearish market as fund managers buy into gold as a hedge and gold traded above $900 for the first time. China debuts gold futures last week which also pushed the market higher along with people buying the GLD ETF.

This week get ready to buy the TWM and keep tight stops for any more down turns in the market.

These are all quick trades riding the bounce and they all showed strength in volume and price action.

Bought NYX at $79.35

Bought LFC at $75.50

Bought WFR at $71.10

Bought AGU at $67.04