If you believe that we are still in a bear makret and not think all will be rosey and we will have a fairy tale ending to this crisis then you have to think that the 200 day moving would be a giant hurdle to overcome for the bulls. Lots of bears waiting to short there and bulls looking to take profits around this 200 day moving average. Last night while sleeping i had a dream/nightmare about stocks. No joke, this usually happens after i experience or see a high level of emotional drama around me. I think it's safe to say that yesterday i saw it. Based on emails i was getting and visiting around many blogs. I have to say that in hindsight i saw lots of bears capitulate yesterday and mostly a lot of greedy bull behavior wishing for more gains! Now, this doesn't mean that we cannot rally anymore or pile on the shorts but for me at least, i will have to do the smart thing and trade very lightly until i either see a confirmation of what i just stated above or we pullback for a few days, wash out more longs and then start to rally again. Check out the attached charts and tell me if you wanna be long and strong right now????
I am advising all my subscribers against any new longs here. My two cents
I said it yesterday on Wallstreak. I don't know why anyone would want to be long here.
ReplyDeleteThanks for pointing out those 200day ma's.
I agree,closed all my longs yesterdar,missed out a lot today with WRES and MPEL.
ReplyDeletewe actually ended up taking 3 longs in the small cap area near the close. we might see one more leg up in these low priced stocks.
ReplyDeleteit's only thing that has been really working lately anyway.
ReplyDeleteStewie, I bought front month puts on AXP 25's....something bad this way comes IMO.
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