Wednesday, April 15, 2009

The financials and Google follow the script!

GOOG traded down to 364, before it reversed and closed up over 10 to just under 380. You know where I think Google is going already!

But for those squeamish, the out of the money cheap May options all doubled; now tomorrow when the stock rallies and the market makers pump some volatility in these numbers you can peel off a few and play the earnings for free!

And just as I advertised this morning, the financials reversed, following the same script that they followed March 19th. Tomorrow morning, JP Morgan reports earnings; and don't think they don't have some good numbers baked in.

For those who followed the script today, and bought the financials on this morning sell-off, you can give them some stock in tomorrow's ramp!

And the market, followed the expiration script perfectly! It sold off, and then reversed, as the selling yesterday wasn't real, but "reel"--a little selling by traders who had profits, and a lot of shorting by those who wanted the market down. They made their own little movie that they wanted you to believe in!

How do we know that?

Because the market followed the script!

If the selling was real, why did they all scramble to cover today?

But you need to understand the games this market plays, and the hand that it gives you.

And use it against these high priced manipulators!

No comments: