Monday, May 2, 2011
Bin Laden Rally
Oil and gold go down and the S&P futures go up on killing Bin Laden? Who bought on this news? Just wondering. Those still worried about Al Qaeda and Bin Laden are those that permanently wear tin foil hats and constantly worry about the end of the world. Maybe some dumb money will come here hoping for a move up but we've already gone up 70 points in 2 weeks after that S&P downgrade. It just makes it that much more attractive to look for a short side entry soon. I believe we top out in the middle of May, the risk reward is getting more favorable for selling here.
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4 comments:
I was considering fading the Bin Laden move but with two decent sized cash deals announced this morning and it being the first of the month I am staying put.
I don't think this market will run away to the downside or upside from here. Maybe this Bin Laden capture will finally put investment sentiment to an extreme which can be faded. We'll see.
Last years first of month effect seems to have been pushed forward to the last one or two days of a month so far this year
Traders are catching on, we are still getting the regular gap up on the 1st day of the month like clockwork, but the dumb money buying the 1st day of the month rallies intraday are gone. It is too well known now and the market is just too high now to accomodate endless rallies.
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