Market Wrapup

Interesting day to say the least. My bets in Copper and Shippers paid off extremly well; however, my smaller bets in URE and UYG did not. I booked solid profits in PCU and sold half of my GNK. The Intel numbers after the bell were good in my view, regardless of the AH's selloff. The bottom is in for the PC Market, so I think this dip is a strong buy. I personally own TSM and RFMD. INTC below $15 becomes very attractive. As for financials, I might have lost on the trade. Short sellers are getting back in so be careful on the long side here. I am still long UYG, hopefully for Jamie Dimon to come out with a "Grand Slam" quarter to scare the shorts to death. JP Morgan reports Thursday but I am hoping for a early preannouncement.

As for JASO, I bought more and hoping for a bigger breakout. The breakout peaked at 10am, so I am hoping for a retest and some "breakage". It's a sizeable position for me, so I may set stop losses on partial shares to reduce risk, while keeping a core long-term position. Below is my updated portfolio. As for the market, it looks like we will retrace to 825 on the S&P but hopefully some good news can scare the shorts into selling some. I believe there is firm support on the S&P around 825 and could be the bottom channel of the "sawtooth" pattern that we will see. So for example, I believe we will hit 900 then 825 then 900 then 825 then 900 then 825 then go to 1000. This is my thought and prediction, so it could definetly be wrong.

Now to my top position, RFMD. I am a big believe in this semiconductor but the bet relies on the firm's supply chain. I believe the demand will be there but they need to stock inventories up and get them out the door. I own over 3,000 shares and plan on buying more. If you want to play it longer term, the January 2010 $2.50 calls are selling at $.50 cents. Not a bad deal for a longer term play.

I am off, catch you tomorrow.