The prices that the market is trading at reflect a lot of bad news and a double dip recession. Trying to play it short now will be treacherous. I am pretty much done with the short side for at least the next month or so. As I stated last weekend, there would be a big wave this week, and it has come and gone.
I don't expect us to rocket higher, but there will be very few down days. There are a lot of stuck bounce players and recently converted bears who will be selling on the way up. I will likely be trading less and just ride it on the long side as much as possible. Enjoy the long weekend!
That last 15 minute sell off did not look good for the bulls. I expect a little gap down.
ReplyDeleteI'll be surprised if very many people sitting around this weekend come up with a really strong justification for bullishness going into Tuesday.
ReplyDeleteOwl, take a look at my charts (click my name to go to the blog) comparing a rhyme between the 2007 top and the current top. What do you think about fractals? bunk or real?
ReplyDeleteI don't know much about fractals, but I usually don't follow patterns like that.
ReplyDeleteBut this market environment is nothing like that in 2007. I am much more constructive on the bull side this time around than back then.