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I hope you took Frankie’s advice last night. When I went to bed last evening (I had an exhausting day), there were enough people wandering the iBankCoin desert wearing hairshirts and declaring the coming of Armegeddon that I thought I’d wandered into a particularly ascetic strain of the Stinkify Wall Street protest movement.
But I put my faith in the machinations of the Great Machine — The PPT, more than I do the easily beclouded emotions of my fellow piker traders. You see the Great Machine runs on blood of cold nanobytes and young trader stem cells. It cares not for your fears and your worries any more than it feels like patting you on the back in your more elated or expansive periods.
It feels nothing but the data. And what’s curious about yesterday’s readings was not that we came off over “overbought” levels, but that The PPT “leveled off” at a certain point yesterday, and held fast over a period of increasing trader nervousness here and across the internets. It certainly gained my attention. Were you watching?
And that fastness in the mind of the Machine was telling us something. Just as Timmah and his group of Eterno-Bears were rubbing their fat little paws together in anticipation of a plump pic-a-nic basket, the titanium hand of The PPT was wheeling back to strike a sharp blow to their tender snouts.
Not so fast, little Bears… did you think it was really going to be this easy?
And truthfully, if we look at our long term signals, there’s not a lot indicating much of a correction in store. For example, you think the Big Boys maybe had an idea about what GOOG was going to do? Have a look at the $NDX weekly for a clue… It’s launched this week off both up-turning primary EMA’s, the 13 and the 34 week exponential moving averages. It’s also got a lot of room to go on teh RSI and slow stochastics before it’s overbought.
When the techs are that lively, it’s often a sign that the bull is not done goring his fat brother bear. Perhaps this weekend I will extrapolate, if you so desire.
In the meantime, I still hold one last third of my QLD position, which I may have been too hasty to sell (but I had a plan to sell at $86, and one must stick to one’s plan, no?). I also still hold a small postition in SKF, which I will hold to as a hedge, through the rest of this roller coaster ride.
I also kept all my gold and silver positions, as they showed similar resiliance — that stickiness — that The PPT showed yesterday. Also PPT related, the silver ETF went “oversold” ridiculously early yesterday. That often portends a shallowness in the market that will soon be reversed.
Pay attention to sentiment, folks, but above all consult The Machine in these bear-colored times. It will guide your hand and let you sleep at night.
Best to you all.
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Jake – SKF back to your original entry I believe. When do you dump or add?
I am stalking more as we speak….
Never let it all go.
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SKF is gonna get murdered on Monday.
Doubtful.
That 200 day moving average has been holding pretty strong.
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I can’t follow this market. Nauseating ride. When there is fear I accumulate such a small amount into my retirement accounts to be laughable to the PPT gamblers. Keeping cash available for further declines yet enjoying the weird rise in the markets. Dollar cost averaging for glory in 20-30 years. Buy and hold investing. How utterly quaint.
I suspect in a few years there will be a lot of folks that wish they were accumulating physical coins and bars right now. Nothing about this market feels genuine.
Perry came out with an energy/jobs plan today promising 1.2 million jobs. Of course he said he could do it with executive order, bypassing Congress.
I am all for drilling the hell out of the federal lands. I am also in favor of curtailing the over-reach of EPA regulations. What I am not in favor of is tyrants bypassing the checks and balances of our republic.
More central planning from the statists. No thanks.
A lot of that stuff is run by Exec Branch imprimatur already… DOE, DOI, EPA, etc. It’s why Obama has been able to be so destructive in such a short period of time.
He gave the schlerotic parties their head… and they have clogged up the arteries of this country like gravy in a fat man.
That’s why much of the damage can be undone by the Exec, without having to wait for Congress to “defund.”
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True, but at some point I would like to see us return to 3 branches of government instead of 2 1/4. We can’t continue to allow our presidents to act like a tyrant.
Apparently Obama is going ahead with his “jobs bill” through executive order. To hell with Congress. The dictator in chief is going to spread the wealth regardless. The unions and takers are waiting with hands extended.
Exactly!
Executive orders are unconstitutional and empower the executive branch far more than was ever intended. Inevitably what we end up with is a Police state.
http://mises.org/daily/5693/The-Police-State-Abolishes-the-Trial
Love that site.
Recommended.
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Yes. indeud.
regardless of where on the political spectrum you position yourself.
They often have “third” point of view of things which is very liberating.
Senator, thanks for the heads up. I ended up picking up some AGQ in the 58.5 area.
Looks like today’s Barrons has a bullish cover story on the banks.
http://online.barrons.com/home-page
That’s the signal to go long Skiffles if I’ve ever seen one…
Barron’s cover stories have almost become a cliche…
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So is there a way to have the PPT feed into a daily chart for us mere distinguished gentlement–that is, anyway not manual data entry?
“gentlement” –typo. Apologies.