Well, we finally got the pullback everyone was looking for today. Now the question becomes how long will it last? Well, one thing that is encouraging is how fast the hybrid score dropped today, possibly signaling the dip will be bought sooner than later. However, this week is filled with plenty of earnings time bombs as well as option expiration shenanigans, so I’m not expected this to be an easy week to trade.
Today, I took it light and refrained from making any new trades. The only thing I sold today was the little $SDS hedge I put on before the weekend. I am still net long, but things could change quick for me if we break 1190:
I still like the idea of being long individual names while short the indices as a hedge. Setups are slowly, but surely stating to pop up on my screen, and a few more days of sideways action would be the best scenario for the bulls.
I plan to continue to keep it light this week and manage what I currently have on. For being down a cool 250 on the Dow, my positions barely took a hit, which in itself is another encouraging sign. I’m still not convinced on the end of the world scenario, and still believe we will see a end of the year rally.
Trade accordingly.
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The Fly doesn’t seem to share your views.
That’s what concerns me, he is rarely wrong.
With no disrespect to The Fly, he still bought WNR today (I almost did too). If the market tanks like he seems to be forecasting, his WNR will not be spared!
CROX and GMCR are toast. Not a good sign for things to come.
Those two stocks are not barometers of the health of the economy.
CROX had a terrible guidance and GMCR is being targeted by Einhorn as this is his 2011 short thesis pick.
Thanks for saving me the trouble Vince.
Vince,
Fish may be bringing up a good point. Not a barometer, but I do remember the phenomenon of momos being taken to the woodshed (no Woodshedder) as being a harbinger of significant pullbacks. Think NFLX most recently and FFIV before that, to cite two examples. Not sure what “the health of the economy” has to do with short term market direction, as I think you are trying to imply. I prefer to get my bias thru more scientific methods, such as “I think Trading Nymph is hot” so therefore I lean bearish. Works for me.
there’s $CROX, then there’s $GOOG.
What? Don’t you thing Trading_Nymph is hot??
Are those Candlesticks or “Heineken” Bars?
What would satisfy your year end rally criteria? NASDAQ went from 2300 to 2667. What else do you need for year end rally. Do you need to see 2720 or little higher. Is 2750 good for year end rally? Hopefully we get there for Unbelievable shorting opportunity of the year.
I’m looking for stocks like $X to be back above $30 by year end.
Why should anybody buy stocks in a bear trend that is supposed to last for at least few more months unless proven otherwise. Unless you have balls to buy on oct 4th.
I understand you point, which is why I stated to pair individual stocks against the indices.
Thanks for your patience RC. Good night.