Keystone's Midday Market Action 6/14/12

RTH popped above 41.10 at the opening bell so the bulls are throwing confetti.  The RTH is now printing 41.47.  The SPX LOD is 1314.14 no where near the danger level at 1310.50.  Interestingly, the expected Thursday weakness after an uber weak Wednesday did occur, albeit by pennies. If you held short positions from yesterday you could have gotten out lower minutes ago.  Keystone took profits on the TNA long trade, which is long small caps, using the TICK spike over +1000 to exit, will look to reenter. With the RTH at 41.47, the bulls are cruising. Markets are highly volatile, however, so caution is warranted.

Note Added 6/14/12 at 10:08 AM:  Keystone flipped sides, bot TZA opening up a new long position. SPX 1318-ish is interesting today, price popped at the open bumping its head on 1318 receiving a smack down, then price came up and gapped thru the 1318. Thus, perhaps a test of this level can serve as a downside target for price in the coming minutes or hour or two. The sideways SPX channel at 1307-1326 remains in play as we continue inching towards the Greek tragedy on the weekend.

Note Added 6/14/12 at 1:18 PM:  RTH is 41.59.  The SPX remains elevated at the top rail of the multi-day sideways channel thru 1307-1326, playing around with 1326-1327 resistance. Coals are feeling some love today; JRCC is rockin'.  Keystone's short T trade is going the wrong way as folks continue to run to dividend stocks pumping the Divvy Bubble ever higher. Right now, Ma and Pa are handing their life savings over to the guy in the suit that said place it all in divvy stocks.  Watch to see if the SPX can break out above the top rail of the channel at 1326-1327, or, if we head back down into the channel and resume the sideways vibe. Tech is not leading the broad markets higher so this helps keep a lid on the upside.

Note Added 6/14/12 at 2:55 PM:  SPX is gently pushed downwards form the top rail of the channel. RTH is 41.48 well elevated above 41.10 so the bulls are sitting back with their feet on the desk. Keystone took profits on TZA exiting the trade. Also bot TNA opening up a new long position.

Note Added 6/14/12 at 3:05 PM:  Keystone took profits on TNA, ten minute trade for a percent, something is going on, wild spike higher in markets. Its always better to be lucky than good.

Note Added 6/14/12 at 3:09 PM:  Keysotne flipped to the other side opening up a new trade on TZA again--fading the rip--placed the trade at the +1200 uber TICK.

Note Added 6/14/12 at 3:21 PM:  Keystone took the dough on the TZA trade. The markets lost altitude after the tape bomb hit and now the smoke is clearing.

Note Added 6/14/12 at 3:45 PM: Keystone would like to enter TZA but wants to see 21.18, now printing 21.30.....being stingy....

Note Added 6/14/12 at 3:49 PM:  They came down to snag it so Keystone is back in TZA at 21.18. Tech (COMPQ) is not leading the broad market (SPX) up so the upside continues to appear limited.  The SPX sideways channel thru 1307-1326 was violated to the upside on this wild QE news.

Note Added 6/14/12 at 4:03 PM:  Keystone wanted to exit TZA at 21.38, being stingy, waiting for price to come up, but they came up within a penny and would not snag it, so the TZA trade remains in place overnight. SPX closed above the 1307-1326 channel in place over the last week. Keystone has to go to HD now to buy an exhaust fan.  Why? Since every day of trading ends with time needed to allow the smoke to clear, maybe an extra fan will help.