Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Monday, March 24, 2008

2 day chart of the Spy

we broke the trend... and we... I believe will get a 4th wave correction... end of the day

5th wave Rally... Possibly a few hundred point correction tomorrow.... I can't imagine a news item that would take the futures down tomorrow....
Sorry, don't know how to trade it.....
I sure would like to see a healthy pull back here....
Still possible that we will see shorts comming out of the market like crazy tomorrow...

2 comments:

Tony said...

2 cents:
I still think tech leads us out of bear market, but still needs to form a solid base. Naz looked great today, but choppiness will continue a bit longer.

I still really like Taiwan, but it needs to pull back a little from here. TSM is strong buy, but is overbought here.

I disagree that shorts come out of market tomorrow. Big treasury auction Wednesday may see short-end interest rates rise, which will bring stocks down Tues in anticipation, and also a little profit-taking from today will put pressure on the market.

Still lots of risk in this market: commercial real estate, European mortgage unwind, US is not out of the woods. What happens when bear Stearns bad paper defaults and the taxpayers are left holding it? When will that be?

Eric said...

when we didn't see any 5th wave action I took a segnificant short position.... We will see... or I'll lose money again...

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