I had every intention of getting long today. I did not really consider that the Nasdaq and Dow might be up over 70 and 200 points by the close. It seemed to me that after Thursday, we would be up, but not this drunken teenager rally. I waited all morning for a dip. The indexes kept making higher highs, and higher lows. After lunch, I gave up trying to buy, deciding the rally was overdone, and went out and played baseball with my son. When we came back in before the close, I was watching what I believe to be distribution. So instead of getting long, I actually sold short [[LEH]] and nibbled on a little [[SKF]]. I did haveÂ a limit order that filled for a small amount of [[MBRK]]. I’m also short the ag name, [[CNH]].
Plainly, I’m not buying after two big rally days in a row. Instead, I’d rather haveÂ a few shorts grillin’, while I wait on a pullback.
My plan has been for months to buy the indexes after a successful test of the 50 day average. With the Dow, Nasdaq, and S&P all above the average, I have a strong feeling that the test will come, shortly.
The Retail Holders….[[RTH]] This looks like a nice short setup. I can’t imagine that this move has been anything beyond short covering.
As for the Homebuilders, [[XHB]] it looks like money (whether itÂ was dumb or smart remains to be seen) sold into the strength today. Watch the 200 day average, just like in the Retail Holders, to guide short sales.
All in all, it appears the Bulls have stampeded for the clitoris, bypassing all that is good and holy, in their rush for satisfaction. I’m concerned the party will be over before it really gets started. Therefore, it looks like a pullback will be in order. Let’s see if the indexes can hold the 50 day average.
You say Clitorus I say Clitoris
Clitorus/Clitoris – Tomato / Tomatoe…lets call the whole thing off.
Great post by the way.
You know it did not look right with a “u.” So, I just googled it spelled that way, and a whole page full of sites popped up with it spelled with a u. I guess they are there to capitalize on dumb ass teenagers who can’t spell. What does that say about me? lol
Spelled it correctly, you did.
Went bullish incorrectly, you also did.
Yoda, no, I spelled it incorrectly, first. Then, because of Bill, I edited.
Anyway, we’ll see on my bullishness. Keep in mind, I’m net short.
IBC machine has more buys than sells currently
Thanks for the charts Wood, confirms everything I have been thinking. It’s really hard to believe where SRS is.
I like the drunken teenagers analogy, good one.
It will be interesting to see what happens today.
BTW I wonder how many times Cramer will call a bottom? yesterday I heard him say on CNBC that “this is it, the worst is over”. Oh really?
Good post. In this environment, the market needs to prove itself worthy of going long. I think we may be close, but not at that point.
My gunpowder is still being kept dry. Been holding off on the shorts also. Totally hedged right now.
And if you’re one of the Greeks you get to have Ben hold your hair while you vomit up bad earnings.
The hangover ain’t going to be pretty on this one.
“Greeks” meaning the Banks.
Somewhere my “Animal House” metaphor short circuited between my brain and my fingers.
Cuervo, made sense to me anyways…I kind of took the Greeks as everycompany.