I like MMM, not only do I like the company, but I like the set up. Number one, it's set up a long elongated type of Inverted Head and Shoulders formation, if you take the Head at $70 and add it to the Neck Line, at about $84, you get a target back to $98. You could also use an "Equal Move" scenario, the two green lines, which gives a target of just under $88. Helping this pattern, once it breaks over $84, is that it gets into that green box on the left, which is an Air Pocket, or VOID, which provides NO resistance back up the gap from July around $96. My "preferred" scenario would be it full fills the "Equal Move", then pulls back to "test" the break out over $84, then goes to $96, the trigger on that would be over $88. 

Wad ever, the, MARKETS, have to co-operate:

The futures are still higher, the green line is the close from yesterday, but we had a big pull back in the red box, when a Senior German official, and NOT Merkel, said they won't consider the proposal being put forth by the EU Zone, they either want a "substantial" change to the existing treaty, or an entirely new one.

Should be a fun day, good luck to you out there in La La Land.

Barchart.com's Chart of the Day - IBM (IBM)

Barchart Research Team - Barchart.com - Tue Dec 06, 9:54PM CST

The "Chart of the Day" is IBM (IBM), which showed up on Monday's Barchart "All Time High" list with an all-time high of $193.61 and then on Tuesday rallied back up towards that high and closed +1.10% at $192.94.  TrendSpotter on Tuesday issued a new Buy signal at $192.94. (full story)

I don't mention Barcharts Chart of the day very often, for previous reasons stated, MAINLY, because they never ONCE mention any thing SHORT, but I have to admit, it looks to me like IBM has a lock on $200. 

I'm tellin Ya, the FED's are arming their internal security forces to SHOOT civilians when the riots and revolution start, THIS HAS TO BE STOPPED!

Battlefield US: Pentagon arms police departments with free heavy weaponry

Check out the bottom of the article where the FED's are flying drones over US soil.

Just my personal opinion of course, but if some one put a gun to my head and told me I HAVE to buy one, I'd buy the $VIX in the green circle. We had the second day in a row where both the $VIX and SPY finished higher, although just barely, I can only guess this unusual action is caused by Fund and Hedgie managers trying to chase performance into the end of the year, but protecting their ass's by buying protection at the same time, IE, some thing like married puts with their Long position, I honestly don't know. I do think, that with the ugly looking formation on the SPY, a gap down could get this thing really rocking and rolling to the down side. I imagine we, "probably", stay pretty range bound until we find out if any thing good comes out of the EU meetings at the end of the week.

Toni Hansen's Mid Day Update

The Line the Bulls Need to Crack
If this bearish resistance line gives way, the intermediate trend will change. Get Sam Collins take on the markets.

HHHHMMMMMMMMMMMM! I wonder what it means when outfits like "Advance America Cash Advance Centers" are making new 52 week highs???????
HHHHMMMMMMMMMMMM!

 

Futures are slightly higher this morning heading into the REAL open, the benign numbers are kind of masking some fairly wild over night action. We broke yesterdays low in the after hours last night, the lower horizontal line, but found support on a lower trend line that goes back to the end of last month. We then had a big rally after the European open, I guess after S and P down graded every one of the Euro countries last night they figure it can't get any worse, hahahahhaha.........HAH!

Wad ever, I can make the case that we have ANOTHER Head and Shoulders forming, we got one last week that worked to perfection. The official trigger would be holding under that lower trend line, but I could make a case to go after it if we get below yesterdays close, which is the upper horizontal trend line, which is an important line as we held it on the first pull back after the Euro open. The pattern becomes invalid if we close above the high of the right shoulder, or the lower high we just made.

Good luck to you out there in La La Land today.

Jeremy Grantham pretty much sums it all up in his shortest quarterly letter ever:

http://www.gmo.com/websitecontent/JGLetter_ShortestLetterEver_3Q11.pdf

So, are they going to put GW Bush, Obamabanana, and the entire Congress and Senate in jail for being the primary cause of high drug prices???? Is every major drug lobbyist going in the slammer??? How about every one that works for PFE, MRK, et'al??????

Bill would make drug price gouging a federal crime

Welp, we had another one of those Wiiiiiiiiiiiierd days yesterday, when the SPY finished higher on the day, AND, the $VIX finished higher.
This time I went back and looked at the prior instances over the last four months when this happened, I drew a red line over the SPY candle to mark the days, then drew a red circle or box when the index fell in the ensuing days, or green ones when it did NOT. It happened five times prior to yesterday, that I could identify, three of those times the market fell over the next few days, pretty substantially in some cases. In the two times we didn't fall we had a three day rally in one case, then followed that with ANOTHER day where they both finished higher, and fell pretty hard after that, in the other case we rallied for two days, then had a big dump, before having a huge gap up.
I identified one other unusual day, that's the gray line with the "X" above it, on that day the market gapped way up, and then trended LOWER all day, the $VIX didn't finish higher than the previous day, but opened LOWER and then trended HIGHER all day.
A couple of things I noticed when the markets fell after this situation is that the NEXT day was usually either a day where we gapped HIGHER and then trended lower all day, or the market just flat gapped down the next day. In both cases where we FAILED to go lower after this situation, we gapped much higher the next day in both cases.
One bad thing about the current, aaahhhh, "signal", if you will, is the market has done the "bad" thing the last two days, that's where we gapped higher and then trended lower most of the day. My conclusion is that if we gap substantially higher in the morning, I'll ignore the "signal", but a gap lower, or close to flat, and I'm going to be watching it for weakness very closely.

Stock pick for 12/06/2011

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Dear traders,
It is more and more difficult to find lower risk setup for next day. Reason for that is resistance what indices reached on the daily time frame. Pace was very strong what not suggest for selling continuation (not at this moment). Since stronger resistance “area” is here then risk for long side is understandable. On the other side every try for 60 min correction finish with new high and because of that short side is not low risk too. Daily indices charts suggest that wild range action could continue. I can now enumerate several possibilities what can be or not. Point is that we are at moment when chart can’t suggest swing move (for sure not lower risk setup move) and with news what can come out every day it will be just guessing from my side. For me it is more important to see what solutions I have. First, I will wait at least first 5-15 min before I will take any trade. Risk will be small as usual last days and patience will stay my best friend. It is game with nerves and I don’t know where end but I will know that I like to see action before I will take any trade. That is hard for watch list because we had many gaps last days and all change after open. Because of that I invite you all to contact me for any specific trade if there will be any question.
I wish you all great trading day
Ivica

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DY - long
Technical view: DY look like have own way and on the daily/weekly tiem frame we can see that DY trying to break on the new high and it is daily third try. In the past it was really nice charm pattern, but lately in news market don’t work that well. Anyway, we can see that Monday was open with bear trap (opened above Friday high and closed near lows) and I will look for possible continuation and for that I will look 15/60 min time frame. Another stop is under Friday low. My interest is trap and new high buying pressure.

Bubblevision, some times called the Idiots at CNBC, was yelling and screaming about the Big Mac making new all times highs yesterday, well, the stupid thing put on an ugly looking Bearish Engulfing bar, and looks like a stinking short to me, but, HEY, THAT'S JUST MY PERSONAL OPINION!!

Jesse Livermore 3 point range breakdown failure setup

Jeremy Grantham Releases The Scariest Market Forecast Yet

Actual path of SPY.

Welp, so much for prognostication, hahahahaha!! I'll think I'll stick to Udder stuff. It was "kind" of close, up until the S and P down grade of 17 Euro countries, wad ever. 

My "projected" path for the SPY today.

Toni Hansen Mid Day Update

Jesse Livermore 3 point range breakdown failure setup

The Bearish Signal Most Technicians Are Overlooking
This sign of overall weakness is usually followed by more selling. Get Sam Collins take on the markets.

Sigh, another absolute, baldder dash piece of Wall Street pure BULL SHIT!!!!
No Lost Decade for S&P 500 as Big-Cap Bias Masks Rally
You know, I don't give a F---! WHAT they are, "TRYING", to say in that stupid article, but I guess my question is, IS THE SPY DOWN 17% SINCE 2000, OR FRICKING NOT?????????!!!!!
You can warp your fricking numbers any way you want, all I can do is go by what the ACTUAL numbers say.
"Wall Street is becoming little more than a glorified crack house."
http://www.hussmanfunds.com/wmc/wmc111205.htm

As timeless now, as it was 63 years ago. Of course, 63 years ago I don't think the average American was facing the Unconstitutional and unlawful provisions of the UN-Patriot act that violate every one of the freedoms mentioned in the cartoon about Unlawful search, seizure and imprisonment, or the build up of a Nazi Homeland INTERNAL Security organization whose sole mission is to squash, BY ANY MEANS NECESSARY, the assembly of American Citizens who have the gall to voice objection to the violations of our basic rights. Even more terrifying is that ten year's after the creation of these unlawful organizations, and after the COMPLETION of the stated original mission and reason for their creation, the Senate and Congress are looking to EXPAND their powers, as McCain and Levin are trying to give the Military UNLIMITED powers to imprison ANY ONE with out representation, http://www.salon.com/2011/12/01/congress_endorsing_military_detention_a_new_aumf/singleton/. 

Stock pick for 12/05/2011

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SEIC - long
Technical view: SEIC closed above 20sma resistance on the weekly time frame and I will look for buying opportunity above 17.05. If that will be vase, then for sure we want it for swing trade to stay above that weekly 20sma (support area at that moment). For ideal swing setup it will be best for SEIC to stay in consolation several more days for lower risk setup. If SEIC won’t see setup at Monday it will stay on my swing long list. Depends on after setup action, target will be daily or weekly 200sma resistance area.

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AMZN - short
Technical view: After daily move down and bounce from high on the AMZN daily chart we can see relative weakness if we compared with market action last few days. Also AMZN at Friday reached to 200/20 simply moving average on the daily time frame and weekly 50sma resistance area. I will look for selling continuation and for now idea is under $195 what is under Friday low and under 20sma 60 min. Initial stop will be daily 200sma but I hope some intraday resistance will be good for better reward.

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Monday Morning Outlook: Are the Shorts Finally Losing Conviction?

I'm just not that into YOU, and I can't quite figure it out, I'm talking to Mr. Market of course, not, "YOU", per sec, I'm ALWAYS into "YOU" (hopefully for some Moola, hahahahaha).
This chart kind of gives a graphic reason why I get that feeling, this shows the pull backs, and subsequent "rallies", of the last three years, the black line is the SPY, with the kind of Mauve line being Barcharts $MMTH, which is the number of stocks above their 200 DMA. The pull backs in the SPY have been surprisingly close in scope, starting with the last one in 09' to the current one, but the $MMTH is just off the chart as far as any comparison to the Udder rallies. One thing I notice right away is that the $MMTH tends to run pretty much right along with the SPY, in normal times, and just like an "Indicator", like an RSI, you can get reads when a divergence appears, such a divergence gave advance warning back in 07' when the SPY hit it's all time high while the $MMTH was actually collapsing, I've noted some smaller divergences on the chart such as from September of 09' into April of 10', and in the Mauve box on the right side where we got a fairly severe divergence in the $MMTH leading into our current collapse starting in August, what some thing like that means is that the Index is moving higher with fewer and fewer stocks participating in the "rally", mostly as the hedgies and big funds use the mega caps to move the markets higher.
You can see in both the green box on the far left, and the first red box in the middle, coming off the bottom in both cases the $MMTH actually LED the SPY higher, as the number of stocks rising above the 200 DMA was far out pacing the rise in the SPY, IE, it was LEADING the Index higher, as shown by the black and Mauve lines above the boxes, I drew those lines right at the point where the SPY came back to test it's prior high prior to the pull back, you can see that currently we are not even REMOTELY close to any kind of configuration such as we had in those two prior instances, the biggest difference, naturally, is that the SPY is not close to what I consider it's prior high, about $135, and the $MMTH is going to REALLY have to giddy up to get into a LEADING configuration.
A few notes: GENERALLY, a strong rally, with BREATH behind it, will have the SPY above it's 200DMA, and the $MMTH above 70%, we had this configuration from June of 09' into May of 10', and September of 10' into July of 11', so the positive set up can last quite a while. Currently, we are still below the all important 200DMA on the daily chart, with the $MMTH not even close.
Another thing I have on that chart, is a 10MA and 40MA for the weekly chart, the 40MA is close to the 200DMA, as the 40 weekly is at $126.47 while the 200DMA is at $126.69. The reason I have that on there is because a lot of fund managers use those numbers to define Bull and Bear markets, and also use a cross of the 10MA and the 40MA as a market timing tool, I have the little red and green circles showing the negative and positive crosses the last three years. There's only been four "signals", and as you can see, they work all right, about as well as any "MA" cross "System". One negative I notice is that for the first time since the 09' bottom the 40MA is sloping DOWN, and it wouldn't surprise me in the least to see us try and test it again, and FAIL. We HAVE to get above that item, or the 200DMA, before we can even begin to start getting more aggressive.
Lastly, one of the reasons I drew the red horizontal line in the green box on the left, and the green horizontal line in the red box in the middle, is to show how the SPY formed a very nice Cup and Handle formation on those two FIRST tests of the prior highs, meaning I would certainly LOVE to see it do the SAME thing should we go up and "test" our current prior high of $135, with, of course, a corresponding huge jump in the $MMTH. The bottom line, for me at least, is I'm not going to lose any sleep over this thing, until some thing like that happens.

Futures have been much higher this morning, DOW about 175 points, although we've pulled back some after the NFP report, which was GOOD! We're up because of more news out of Europe, as far as I can tell it appears the Euro Zone is lending money to the IMF of all things, hahahahahaha, money that they DON'T have of course, so let me get this straight, they issued NEW credit cards so their members could borrow money to pay the interest on the PRIOR credit cards, and now they are borrowing money off of new cards to loan it to the IMF so the IMF will lend it back to them, so they can pay the interest on the NEW credit cards they just took out????!!!!!
Wad ever, I could make a case on that chart that if we can get over the October highs, we could get into an "Equal Move" scenario, which could take us back up to the July highs in the $135 "area", probably some time after the first of the year, or there abouts. .
Good luck to you out there in La La Land.

Here's some interesting little numbers, currently we are trapped between the close of last year on December 31st, at $125.75, and the open of THIS year, at $126.71, so we are POSITIVE for the last year, but NEGATIVE year to date.
HHHHHHHMMMMMMMMM, now, where do you think Wall Street and their Insider trading buddies in Washington DC want to see the market close at the end of this month???!!!
Of course, they want to see it close HIGHER, but it's interesting to me how the January open acted as BIG support in March and June of this year, in the green circles, which, if you go by classic technical analysis, support, once broken, becomes RESISTANCE, which means we have a HUGE battle going on right now by the brilliant Bear's and those dumb ass Bull's.

Stock pick for 12/02/2011

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JOYG - long
Technical view: Another daily continuation pattern after Wednesday bears trap open. On the daily time frame we can see that is third try to break consolidation channel and yesterday action showed small range bar what result with continuation pattern. JOYG have swing potential if will break above $94 area and have room to run and reach $100 resistance area. It will be ideal if pace and volume after setup increase because 60 min time frame is little extended and in news market it can always be tricky, but after two 60 min buying waves it is ok to expect another one. On the chart I brought intraday stop and that is under 20sma 15 min what I will use when I will see action after setup.

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We had another one of those weiiiiiiiiiird days, as the stock markets, bonds, and the $VIX were ALL lower, with the NasDogs, in the form of the Q's, being the only exception, at least oil was up on the dollar weakness, but gold was down. With the bonds and $VIX being significantly lower than the index's, I get the feeling people are fleeing the "safety" of bonds, and not hedging their bets as much.
In that vein, "Trading the Odds" has some rather bullish stat's on the December NFP day,  December and Nonfarm Payroll Employment. 


Also, Long-Short Timing went Long at the close yesterday, via the QQQ, with the closing price as the entry target for today,  www.long-short-timing.com.

A man and his ever-nagging wife went on vacation in Jerusalem . While they were there, the wife passed away. The undertaker told the husband, "You can have her buried here in the Holy Land for $150 or we can have her shipped back home for $5,000. The husband thought about it and told the undertaker he would have her shipped back home. The undertaker asked him, "why would you spend $5,000 to have her shipped home when you could have a beautiful burial here, and it would only cost $150????" The husband replied, "Long ago, a man died here, was buried here, and three days later, rose from the dead. I just can't take that chance!"


Paddy McCoy, an elderly Irish farmer, received a letter from the Department for Work & Pensions stating that they suspected he was not paying his employees the statutory minimum wage and they would send an inspector to interview them.
On the appointed day, the inspector turned up.
"Tell me about your staff," he asked Paddy.
"Well," said Paddy, "there's the farm hand, I pay him £240 a week, and he has a free cottage.
Then there's the housekeeper. She gets £190 a week, along with free board and lodging.
There's also the half-wit. He works a 16 hour day, does 90% of the work, earns about £25 a week along with a bottle of whisky and, as a special treat, occasionally gets to sleep with my wife."
"That's disgraceful" said the inspector, "I need to interview the half-wit."
 "That'll be me then," said Paddy.

Stock pick for 12/01/2011

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Dear traders,

I like to say few words about my style. I use patterns for trading and that mean I look for consolidations (base, flag or triangle) with other words I look situation when chart is in rest period after move. I believe that is good way to find lower risk setup with good reward possibility. I know that after yesterday strong gap up (news driven) no one want to hear patience, but I can’t change charts and I believe that all who scan overnight seen that many chart are extended, especially on the 60 min time frame. One of important parts to be successful trader is that you must feel good in trade what you will take. Regardless if is swing or scalp trade. I just don’t feel when I jump in extended chart and only what I can do is to be patient (again). I know that patient is another very important part but most of traders don’t like to hear it. I have some ideas for today, but I want to see market action first. Also I found one (already on the move) chart with some intraday consolidation and I hope it will give us some good action. Despite of nice gap up, and good odds for continuation, I just don’t feel good to jump in this high speed running train, I want to see at least slow down or station (consolidation/rest). I think that is logical that if we have pattern on the daily or weekly time frame that is less risky for swing trade and small time frame patterns are more aggressive and good for scalps. That is general (lots of room for profit between that) but I think that is good to keep that in mind

Wish you all great trading day

Ivica Juracic

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WBMD

Technical view: WBMD is already on the move and also not far from previous high and now question is why I have it on list? Yes, it is little aggressive trade, more than is ideal for me, but I can’t ignore daily continuation pattern and strong breakup volume. WBMD back under weekly 200sma resistance area and with continuation pattern for trading plan there are open odds for strong break up continuation. I want to see stronger pace after setup and because of that I use 20sma 15 min for stop because if we will see selling after setup and if WBMD back under 20sma 15 min that won’t be pace what I like to see and because of that I use it for stop. Next resistance is $40 is and after that 200sma what is also weekly gap area. I think that WBMD have good chances for that action and hope news driven market won’t change it. Note: trading risk remain higher for me

How Long Can This Fragile Rally Last?
The extreme and unusually cooperative actions of the central banks reveal the true nature of this market. Get Sam Collin's take.

The monthly returns on various ETF's, the worst return on the major index's was those Maaaaaaaaaavelous NasDogs, some times called Da Q's, at -4.33%, the best was the DIA at -1.81%, the worst of the rest was the XLF at -8.83%, then Brazil at -8.51%, followed closely by OIH, SLV, DBA, Australia, EWA, EEM, etc etc etc, the best was Crude oil at 6.93%, or, eeeeeeeerrrrrrrr, maybe I should say that was the WORST, hahahahaha, with the TLT up 5.76%, GLD was just barely in the green. 

The daily chart of SPY is coming up on it's first resistance area around $127, then the next one is up by the prior highs from July around $133. Most of the, quote, "Indicators", have a loooooong way to go before getting near over bought. The only disconcerting item I see is the lack of MFI, but, HEY, who needs stinking money flowing in.  

The next trend line on the 60 minute chart comes in about $125.50, which we will undoubtedly hit tomorrow, I have no idea if it means any thing or not, we shall see. The Indicators are all over bought, as you would expect, with a couple of them diverging, but nothing big. One thing I notice was there was just NO money flowing into this thing on Monday and Tuesday, with ZERO divergence, I, PERSONALLY, like to see a MFI divergence at the lows, but, HEY, you can't have every thing.
The Fast Money people were chortling last night over the rise in commodity prices, sigh, I guess the FED said some thing about a QE3, buying bonds of some sort, considering that QE's 1 and 2 did NOTHING, other than crush the consumer with sky high commodity rises, well, other than raise equity prices and save their precious banks for the time being, I guess it's risk on for the speculators, if a year ago August is any indication of the future, after the QE2 announcement, I guess I should be buying EVERY THING!

If your stock was lower yesterday, I'd say the thing is in deep Do-Do, some notable decliners that were former high flyers were NFLX, SFLY, JOSB, BBY, OVTI, SODA, CF, LOW, ONXX, JVA, VRUS, VMED, to name a few.