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CKachi have been involved in the markets for over a decade. He takes an active role in researching, analyzing and always trying to be unbiased in his trades in equities, options and ETFs. He is a strong advocate of extensive research, and analysis to come up with only a handful of trading ideas... More
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  • What Market is it? Bull? Bear? When to really know before it's too late.
    I've been thinking quite a lot lately about how it's really amusing that by the time the media, individual investors and simply everyone realize that we are in a bull market we are already towards the end of it. And the opposite is true of bear markets typically. A more clearer explanation is how it is believed in smart money that Cramer pumps stocks so those that are holding (think of those as what you wish) can dump and fools can pump or uphold volume.

    So, what I'm out to shed some light to is when to catch those big movements and the bulk of those trends and not enter too late or too soon. Basically, we are talking about market timing. Riding the bull or bear waves and locking in those profits.

    Here are a guidelines and words of caution.

    1. Don't ever try to predict, catch or call a market top or bottom. It will only ruin you. Reason being is the market is more powerful than anyone and it will turn against you.

    2. Turn your TV off and limit your exposure to a daily dose of CNBC, Wall St Journal or any of those mainstream commercial publications that can stir you the wrong way.

    3. When testing your positions in the market, and trying to get a feel for the trend, always use stop-losses and get out when your unsure of what direction things are going.

    4. For Bear Markets we will see a lot of rallies on low volume and high opens with lower low closes.

    5. For Bull Markets we will see a lot of rallies supported by high volume. Profit taking and lower opens and higher high up closes.

    Remember most importantly the TREND is your FRIEND.

    Yes, yes we all know it's very cliche but, I urge you not to go against the herd. 

    Disclosure: Long GLD
    May 14 4:32 AM | Link | Comment!
  • How to Digest Tuesday's Turmoil
    There has always been a bad taste in investor's mouths when it comes to Tuesdays. The facts are in front of us that no matter what direction the market takes, it's not going to wait for anyone to adjust before these moves.

    We are quite aware that when we look at Main St. it is still in a huge mess. Real Estate and Homebuilders are still knee high in dung. Banks are still failing, 64 I believe to be exact for this year already. The Big Banks are still shaky and in need of Uncle Sam to hold their hands when crossing certain streets. Fears of inflation and household debts are still a realty. And the state of the world's economic health is still very sick.

    However, the point of view on things from Wall St. yields quite a different picture. We have had a record breaking V shaped recovery since last year March's plunge. The earnings limbo for companies has had the bar lowered so low that estimates are being beat, and CNBC is preaching to the crowd their usual garbage.

    Seeing this huge disparity between Main St and Wall St and lifting our heads from our little rabbit holes and seeing what's happening overseas, one should have only one question arise in their heads. Should I be cautious?

    There is no question as to the promise of good times. It will happen! However, not anytime soon. After all when we look around walking down the street or chatting with our neighbors, we are all going through some though times (excluding America's top 1%). As investors or active participants in our global economy we should be cautious and not allow the big mobs...err I mean banks manipulate us and throw us on the street, cause we will not be bailed out. I repeat, we will not receive TARPs or i mean TCRPs (Troubled Citizen Relief Packages). 

    My suggestion:

    Be flexible and be cautious. If you don't have the discipline to trade in this market and cut your losses swiftly; there is NOTHING wrong in parking your money in a CD, or as just CASH under your mattress.

    Investing your time a few minutes into thinking and thinking without bias. Believe me, this will pay you the best interest. 

    May 04 7:25 PM | Link | Comment!
  • Week Ahead Trade Idea on Citigroup Put Options
    I'm thinking that a slew of bad news is going to come out this week. We are expecting some of the usual stuff, bad economic number releases, Goldman chatter, Greek debt. However, we will probably see what then next batch of bad news issues is going to take the place of the formerly listed topics across most news sources.

    I think that market pessimism is increasing and just my thoughts from doing research this weekend, I feel we are almost at a market top or have already approached the edge for a fall.

    So, now i'm analyzing what's one good trade I'd feel confident about sharing on this post and here it is...

    I'm thinking of May $4.00 puts on Citigroup.

    We're looking at a $0.05 to $0.06 cents a share. I think these put options have very comfortable liquidity and can be a very profitable investment for the next few weeks (of course before expiry date). 


    Citigroup options have had quite an increase in put volume and put trading for past few days of last week's trading session.

    Government dumping of shares has started or will start very soon.

    Financials are battered and the poster-child for trouble is Citigroup.

    We will definitely not see the stock hold below $4.00 for a while, but the trade will yield a nice chunk of change if your exit strategy is timed methodically.

    Good luck all! 

    Disclosure: Long Citigroup
    May 02 12:47 AM | Link | Comment!
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  • SLV and GLD are still treading...SLV is definitely in accumulation phase for last week...looking for upside push, possibly after this week
    Dec 27, 2010
  • MIPS also has room for another pop...earnings coming out in a month, long position with approx $14 stop on downside suggested
    Dec 27, 2010
  • ALTH will break out on high --- it's gonna probably do what XOMA did last week --- definite watch-list candidate
    Dec 27, 2010
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