Thursday, August 25, 2011
Sell This
The problems with this market run much deeper than BAC. You are getting a monster short squeeze on the financials right now, but the market is overreacting to this news. Gold is getting crushed and is now so far down from its highs that the risk reward is now very compelling. Very bullish on gold here. And in an intraday time frame, not bullish on stocks.
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9 comments:
Gap hit on S&P500 just a bit too text book, 1250 will be the required pain in this squeeze... gold like silver will scare you and go thru its 50d then buy it when all the weak hands dusted. This will take several weeks not several days.
Dont under estimate the pain here of finanicals ripping while healthcare and utils are worst performs today, same for Europe, this is the consensus long only and hedge fund nightmare. Carried out on bothsides of the book.
1250 on S&P is a pipe dream. Bulls will be lucky to get back to 1207. Gold is such a strong market that unless COMEX raises margin every week, you are going to get a steady rise off this pullback.
And yes, the hedge funds are getting hurt here with there short financials, long AAPL/utilities high dividend stocks.
That was a sharp drop and a lot off put buying. What do you think Market Owl, do we go down further or rally into the close and burn newbie shorts?
Think we go down further, but not a lot of conviction. If we do selloff down to 1147 by the close, it is a buy area.
Do you think we rally in anticipation of Banana Ben?
No, because most traders don't expect much from BB.
Look at Europe not the US, the a very large counter trend rally is due in Europe.
Nice call owl
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