Wednesday, February 10, 2010
Reluctance on Short Side
I see a lot of traders that are reluctant to go short now that the market has fallen 80 points from its year's highs. Its either cash or hanging on to longs from higher prices. I see less outright bearishness and more traders just looking for corrections. Considering what happened last year, I understand the reluctance to short the market. But I think its a different market than last year. I am not super bearish, because it is starting to get crowded, but I don't see how this type of contagion situation gets resolved with a bottom like last Friday's. Most are scared to short here, or are waiting for a bigger rally to short. I remain bearish and look for the ES to retest 1040.
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12 comments:
Problem here is Rydex traders are very bearish and commercial hedgers are neutral to bullish.
Japan & India brought their markets down some. The Hang Seng is virtually unchanged from its higher open. Europe backed out of its rally. The US today may be unchanged, but I'm preparing myself for anything.
Yes, that is the fly in the ointment, Rydex traders. That is why I don't think the downside is that great, but the last down move is usually the sharpest.
Sold CNLG @ 2.55
ol dawg
Nice trade old dawg
Well what now OWL? Follow thru?
Thanks NICA Surfer
What do you mean anon??
On CNLG???
Maybe I didn't make the best sale in the world but I still made over 10%.
As for following through.. I would not jump into this now.
I realized yesterday this company is being run by two brothers.
I think it's a pump and dump kind of stock.
They are a shady company. They did a lot of reverse stock splits and people who do that are crooks.
So I decided I'm getting out of this as soon as it even touches 2.50.
Don't buy this. This could even go to back to 1 dollars. It's a pump and dump.
I remain bearish on a swing basis. We could have a strong finish today after some intraday weakness, but I am not playing it. I maintain my shorts.
Banks were the tell today
Sold other half of MED @ 17.85
ol dawg
I think we're gonna go down dawg. Next move is down but I see us bouncing off Friday's low if it gets down there.
Actually I don't see that much downside. Just simple rangebound chop with a downward bias for now.
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