Saturday, April 25, 2009

Buying Weakness On Monday







It's hard for me to believe this but any weakness early next week SHOULD BE BOUGHT! Looking thru several charts this weekend, it is 'pretty certain' that weakness, should we see it, should be bought. I am starting to see some solid action for the bulls camp starting to develop. These charts caught me by surprise and i did not see it coming but these charts are speaking.

15 comments:

Paul said...

If you want to buy weakness here, are you still bearish long term as you pointed out in your "reversal time" post, or are you changing your position? I agree that it seems a bullish consolidation is forming and prices could go higher, which is unexpected by many, but what about those bottoming patterns in the bear ETFs?

Stewie said...

paulie: the post about REVERSAL TIME, meant i was looking for a selloff in the indexes between 3-5% next week but now looking at those index charts, i am gonna have to revise my CALL and say a pullback of 1-2% could be in order and SHOULD BE BOUGHT. unless the structure of these charts changes dramatically on monday or tues, i am leaning bullish into any selloff early next week. this surprises me because i was sure we'd see a nice juicy selloff all next week. BUT, like i always say, have an mind and EXPECT ANYTHING AND BE READY TO REACT! hope that clears the mystery.

Rick said...

I'm starting to think that the crowd will be bullish until May 4th when we could see a sell the news reaction to the banking news.

Blue said...

I don't know. Where's our sector leadership? All the crap that got shorted to hell is the crap that appreciated the most these last 6 weeks.

Would we really have a rally if Citigroup didn't lie, along with all the other banks about their padded balance sheets for the first quarter? Not to mention the trillions of government assistance to make it all happen. It stinks man, stinks big time.

I want to buy into a rally when the rally is based on fundamental growth. Not this. I know that 6 weeks of appreciation can easily sell off the entire move in four days IF the right catalyst is applied. For example, a GM/Chrysler bankruptcy with their 150 billion worth of debt, and how about the CEO's of Citigroup and BAC being terminated. Then Tim Geitners resignation. That could start a spark.

TheTraderOption said...

Good call Stewie.

Anonymous said...

Giant falling wedge in VIX on daily (starting in Oct)? What do you think?

Stewie said...

anon: VIX is setting up in a very possible falling wedge. god have mercy, if it breaks out and sticks.

Stewie said...

thanks Traderoption. Futures pointing to a nasty open as hoped. we are long FAZ and TZA coming into monday.

Stewie said...

rick: bullish impulse is i will be looking for until the trend is proven wrong. when in doubt, think long not short for now at least.

Anonymous said...

I don't know stewie, I think a major correction will be coming in the near future.

Stewie said...

Don't let the heavy decline in futures scare you. i think we should see a recovery by the close. i am confident of that.

Stewie said...

sold those suckers and went heavy long at the open. Do not fall for the swine flu bear trap. get long and hang on till the close. that's what i am dong.

Stewie said...

FYI: sold most of my longs and now back to cash. Dow recovered and is now up 22pts. taking the gains and hiding in cash.


hope you guys managed some good trades today.

cheers!

Blue said...

*yawn*

Stewie said...

turned into a chopfest and i saw it coming and that's why i sold all longs. The key was to be brave enough to the weak open and ride out the reversal. Booked some nice gains in GNK and GMXR. as well TZA and FAZ gains from friday's ONH.

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