If You Watch the News You’ll Go Broke

Who would have believed after the crash how quickly the market would recover most of it losses. Is it a dead-cat bounce or is it a continuation of the prior bull market? Does it matter as long as you find a way to profit? Let's see what Nick's been up to.

1 Bought Hyatt Call Options yesterday, in at $2.20 closed out with a 36% gain. Nick's rule of thumb for trading these markets now, if you get a 25% or more in a day take it! Bank of America (BAC) Nick got in yesterday and out yesterday at for a 34% gain. XLF is up 4%. The XLF has been beaten down and it's now making a very bullish chart formation. Another higher low will make it even more bullish.

2 Going ahead, he's still bullish on the overall market. Not every sector will go up. Tech has been the leader and Nick's opinion is that the money may well rotate out into financials. We could see another downturn, but Nick doesn’t see it in the charts. Turn the news off, your performance will improve. Nick got bullish in mid-March, 3-19. The Equinox is often a turning point for everything in life. Things were at their darkest at that point.

3. Gold and silver took a hit today. They were over-bought. They got parabolic and then pulled back. Nick made money twice on the GDX since March 23. The pattern is still pending. $1650 gold is a good support level, but it’s all about how the pattern shakes out. When the pattern forms the algos invariably follow.

4. Everything in the travel/hotel sector is in play. Watch the big retailers. Bestbuy had a big move. Waiting for Hilton and Hyatt to consolidate and will then go into them again. The big money is betting on a resurgence in travel and perhaps retail. HomeDepot and Loews are going higher. TJX is also worth watching. Not there yet.

That's it for now. Visit www.InTheMoneyStocks.com for more info. Write us an email at kl@kerrylutz.com. Have a great weekend!