State of the Diva: Karma Sutures

Harry has got "this boy is not a toy" written all over him, but I'm really not liking Harry's latest move and based on my recent theory/conjecture about high beta stocks being a potential leading indicator to overall market direction, I'm planning to call it a play with HWD by selling a partial lot at a test of the $12 resistance level and re-buying at the $9.99 level. If it now goes straight to $9.99 and holds, it is a pretty good sign that the Andrews Pitchfork 3-year uptrend is still in effect - and if so, I believe with all my chart that we're going to be headed towards $20 this year. These are super sensitive areas because, roughly speaking, $9.99 is the 38.6% fib level on HWD's 3-year chart and $20 is the 61.8% level. Plus, they are obvious psychological levels.

I've also been noticing that there has been a tendency for stocks to reject the 3-year median price level on a broader basis. This has been the case with many stocks (BCS, MS, HWD - to name a few) that would be considered higher risk. Essentially, stocks are failing the 50% fib level on the 3-year timeframe. The funny thing is that Nasdaq has just started broaching its December 2007 level. I hate the bears more than anyone else in the world, but this sends shivers up my spine just a tiny bit here. Is it now time for me to be a Short Term Cycle Bitch and start selling some stuff to buy back on a retrace?

Some lower risk stuff I want to get into:

Retailers trading at or near their 52WLs

Any banks that are below their 23.6% fib levels on a 3-year timeframe

The economic landscape will continue to improve. Whatever the pace of the recovery may be, if you can get a retailer near their 52WL and a bank near its 23.6% fib level, it's still a good buy.

I can't wait for the next Non Farm PayDay on 4 February 2011. We'll find out then whether I am on the right or wrong track about the 1 million NFP job creation mark. My feeling is that April will be a really big month as far as the job market is concerned.

For now, though, I'm not getting paid and that dynamic has to change:

-1.38% on the SBA

-1.24% on the Roth IRA

Though the beautiful world of ForexDiva seems to be on the decline, even if the whole world is down on you, you can't be down on yourself - even if the retracement hits you on your way out in a very major WTF sort of way.