By no means am I turning wildly bullish here. However, with the incessant talk about “taking risk off of the table,” combined with short term very oversold conditions, and The PPT deep head nod (while smoking a fine tobacco pipe), I am comfortable playing the longs that I mentioned earlier today for a swing scalp. As I said, I plan to unload my long $GS, $AKAM, $PPO, $DVN and $AKS positions by Wednesday of next week–at the latest. I still believe that we are quite a ways away from seeing good setups for longer term holding periods, even if it just for a week or two. With a cash position currently north of 60%, I will be looking for good short selling opportunities, should we continue to have weak rallies.
Also, remember to do your due diligence with respect to fundamental analysis. For example, here is some riveting, “Market Folly” worthy analysis on the homebuilder sector.
[youtube:http://www.youtube.com/watch?v=wCVRtAJVXaM 450 300]
I completely agree, a day does not fix the extensive technical damage that has been done.
We need to consoldidate and base for a big before having something solid to move higher from.
I didn’t add anything today except a 1/2 position of UNG(stop of 6.80) because it’s got the nicest basing chart around.
Probably be another 2 weeks before swing tradable charts start appearing
I am looking at UNG as well. Maybe it led us down, months before equities, and it will turn back up months in advance too?
Great post chess, a fine read as always. Got me some FAS going into the weekend
Thanks, man. Strong close today should give the bulls a bit of a reprieve here for a few days.
During Fall 08 Mondays were sometimes up big, but were also sometimes down big, depending on the news of the week…
So…. I learned not to hold anything over the weekend