Going short ... backing up the truck on some SMN. This market screams overbought right now. Doesn't mean rally is over, but this is about as good a short opportunity as I've seen.
I think China will has a ton of upside given how badly that market has been decimated, but I'm keeping my trades domestic ... I prefer the relative predictability of American markets. $TNX took a nasty nasty plunge this morning. Looks like my sell signal is confirmed -- retracement is on the way.
Check out these stocks: MDR, USU, ATVI. I am increasing shares in those. ATVI owns Blizzard entertainment, and I think with SCII and Diablo III coming out in the near future, they are poised to make some big revenue. USU, huge uranium enrichment company, largest in US, 1/3 or 1/4 of world market share. Sooo underpriced. I also have some stake in MMGW, but its more a gamble than anything. Those are my investments I'm willing to share at the moment.
I'm seeing positive momentum divergence on almost every daily stock chart I look at. So please don't misinterpret my sell signal -- I'm looking for a very short term correction at the most. This rally is going to be huge, and it's going to last for weeks, and I think the correction will provide plenty of opportunity for guys to load up on calls and longs at attractive values.
i can't imagine we rally much further than 1000 on the s&p and it would have to be a major short squeeze or change in rules. there is no real catalyst for a rally that last for weeks.
The Most Volatile Market Ever Bespoke Investment Group Over the last 50 trading days, the average absolute daily percentage change of the S&P 500 has been...wait for it...3.82%! That means the S&P 500 is averaging a daily move of up or down nearly 4%. This is definitely one of the craziest statistics of the current bear market, and unfortunately, the majority of the daily moves have been down. In the history of the S&P 500, there has never been a more volatile period. Back in February of last year, the 50-day average absolute change was just 0.33%. When we ever do get back to daily moves of less than 1%, traders are going to be falling asleep at their desks after going through this turmoil. http://bespokeinvest.typepad.com/bespoke/2008/11/the-most-volatile-market-ever.html
I just saw the weirdest thing ever ... UYM ticked down 40 cents at the very last second before close. I was like .... WTH? At least it stayed above the 10 period MA.
My totally ignorant guess is 'yes'. I think psychologically people will want to end the week/begin the holidays on an up note.
I left work at noon today so I didn't see it. it was either a fat finger trade or a bad/late reported trade (usually from cboe or nas)
If China ever starts ramping up again, I'm looking at commodity stocks that may supply them. Chinese stocks themselves (ETF's or otherwise) scare me to death.
In retrospect, you were correct, but I was afraid with the huge run up in the market over the past few days, it would be reason for traders to just sell-off and keep profits.
i was hoping for that too...i had a pretty big short position over night in the REITs. it sucked i got out too early like i usually do and it would have worked like a beauty oh well...i still made money on it but nothing close to what i should have.
also...i'd like to remind you guys about TBT (ultrashort 20+ year treasury bill ETF) for long term investors. currently there is still a ton of demand for u.s. treasuries so you don't have to pounce on the trade tomorrow. it should get into the mid to low 40's (possibly lower as the treasury trade continues to play out) and it represents a great way to hedge upcoming rising interest rates for a fixed income portfolio or as just a nice way to bet that rates will have to rise due to the massive amount of treasury supply the govt is unleashing on the markets to pay for our massive deficits. this ETF is the double percentage inverse of the TLT.
I haven't really followed it but the mini-rally in commodities has been kind of puzzling the last few days...the stock explanation for today appears to be a Chinese rate cut but that just seems odd to me.
