I'm starting to get a bad feeling about the speech later. There is a lot of pressure on Bernanke to act as savior but the consensus seems to be that the only surprise today would be a surprise. I think there is too much upside risk to get short here but I have raised a bunch of cash and now sit about 25% liquid. I'll be ready to react to any big moves of the speech. The banks initially sold off hard but have stabilized after Moody's downgraded all their debt as the downgrade was no surprise to investors. New Oriental Education (EDU) is getting absolutely crushed today but seems to by finding support at its 50 day MA at $30.07. There is no specific news but lets stay away til we figure out what's going on. Arcos Dorados Holding (ARCO), my favorite play on Brazil is getting whacked today for over 6% for no apparent reason. If (ARCO) closes below $26.60 we have to stay away and revisit it when the chart stabilizes. The semi's, including my two faves Broadcom (BRCM) and ARM Holdings (ARMH) are flying today and I continue to be bullish on the whole sector. Baidu (BIDU) is coming back a bit off yesterdays strange action rising over 1.5%. Apple (AAPL) is back in the $420 area and the story today continues to be growth, but will the NASDAQ follow the rest of the market if we don't get something besides "Operation Twist"? Probably, so be ready. Gold is flat and oil is up.
This is not a recommendation to buy or sell any securities. DAK was long BIDU, ARCO, AAPL, EDU, BRCM, and ARMH at time of publication but positions can change at anytime.
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