RF & Market Update

(Harry, RF's Money Counter)

Well...welll..well...no need to brag so I will refrain; however, I will say that the media just caused tons of traders a boat load of cash by creating fear. All I can say is don't listen to them. Ben Stein said that Merill Lynch was so cheap at $87 that is should be put in a cereal box and given away. Tracy Byers or whatever her name on Fox said the Dow was going to 16,000 last year. Charles Payne top pick last year was Washington Mutual.

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As for my account, I am up +200.68% YTD, given i went all cash right now. I raised 40% cash today by selling:

OPWV $2.55, 27.5% GAIN

WFC $25.18, 7% GAIN

YHOO $15.60 6% GAIN

CAL $10.02 -1.5% GAIN

TQNT $5.94, +17% GAIN

TTM $8.66, +3% GAIN

HIG $11.90, 13% GAIN

CIEN $10.06, 11% GAIN

I think the market is in one of three places:

1. Top of a trading range that is between 870 to 930 on the S&P..meaning we trade back to 870.

2. Building a foundation for a new bull run to 1050

3. A trade to a wider range to 950 on the S&P

I am mixed on which one right now but play my chips to benefit all three. I raised high cash levels to reduce risk and I don't want to be heavily long nor short here....it's stupid. One side of the coin shows horrid economic data but the other side shows strong earnings. Intel drove the market today, which created a monster short squeeze into the bell. The strength of today's rally was very impressive due to the fact that shorts couldn't drive down the close. We still have big earnings tomorrow and Friday. JP Morgan is before the bell as well as IBM. Bank of America, Citi, and GE are friday, so there is plenty of fuel for the car (or for the fire). My best tip is to play smaller in size in this market and don't push strong long or short here...instead lean on cash, longs, and be market neutral.