So.... There is something I like about the market.
We have some sector rotation... I'm trying to get a handle on how it is all trading.
But it's positive that some things are going up, and some stuff down.
We all know how bearish I am on materials, so when I say it's the stupid stuff that has been going up... we know what I mean. But that is unfair... I could be wrong.
So, standard year end rally goes two days into the new year, So... Seasonaly there is a reason to sell...
So... I just suspect there is one more push higher.... Even though that "Dennis Kneal doing the robot... " just has to be a top.
But my thesis is we are just struggling with the 900spx resistance. even though it's set up like a bull trap.
Just to ramble, we have had a huge tendancy for mean reversion, so some form of back and fill seems correct....
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
Monday, January 5, 2009
rotation again
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