I was running a ton of charts, screens, moving averages on a bunch of correlation stocks and ETFs over the weekend. Anyway, I still think we have a tradable bounce to move us back above 10,000. I can’t say exactly how we get there, but judging by the volatility in our market last week, we probably get there like a drunk guy on ice skates. Even if we don’t get back to 10,000 in the next few weeks, there still is a lot more room to go before we hit any meaningful resistances.
What does that mean for you? Well, basically the easy money on the short side is done, and if you’re waiting to short again, like me, then wait for the Vix to make another considerable spike down (for example, I’d feel more comfortable shorting with the Vix back at the high 40s). Whether you get long or short here, get ready to stomach more volatility or else you’ll get shook out early.
I hope more people are shorting this tape because with earnings around the corner, we are set up for some contrarian trading (the herd wants to short earnings). I can only point out the doors of opportunities out there… you decide if you want to go through them.
Petrohawk Energy Corporation [[hk]]
GMX Resources Inc. [[gmxr]]
[[fxp]]
Excel Maritime Carriers Ltd [[exm]]
Diana Shipping Inc. [[dsx]]
DryShips Inc. [[drys]]
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gio,
you don’t see resistance at 960 on SPX
JD… you’re right. Darn. It looks a bit weak though.
Hey, I missed the EXM day short.
I covered my SRS shorts, and shorted FXP with it. FXP under 100 by Friday? I’m really not sure, but giving it a try.
I’m long EXM.
its rally time.
GO BLUEDOG!!
FXP is under 100. that was fast.
Gio with oil down and the market up, will the airlines run?
http://ironman.com/lee-gruenfeld-looks-back-on-the-2008-ford-ironman-world-championship-through-the-lens-of-a-camera
Ironman last saturday at Kona. I watched some of it. Pretty cool! Do you like that stuff Gio?
Gwar… i like the iron man competition. I’d do it, but i’m not all that good at endurance. my physics teacher in high school used to compete. some australia dude won this year.
… i will probably do a post on the iron man competition over at my thehawaiitrader.com site.
Pie eater…i’m not giving much force to correlations right now. The market is simply moving up because its been deeply oversold. all stocks should move up because the whole ocean is rising. Eventually, the oil down airline up, and oil up airline down trade will work.
While I was watching it I saw all of the surfers guiding the swimmers which reminded me of you. Yes, ironman distance is wayyyyy to far. I stick to the olympic distances which are much shorter. The Ausi was very fast, 8:20 or something. Incredible