Monday, February 25, 2008

Near Term Over Bought -Or Are We?

Ambac to the rescue again after S&P reaffirmed their AAA rating. If they are triple A then I am quadruple A. What a joke, it seems like these rating agencies will do anything to prevent what they perceive as a disaster if the ratings get cut. Their credibility is in the crapper anyway,where were they a year ago when we really needed them? Oh, I forget, getting paid by the very guys they insure. No conflict of interest there, ya think?
Anyway, as I said yesterday, everybody is still leaning short so we get these vicious moves. I wouldn't want to be too long in here because we have had a lovely jump from Fridays lows. I think Ambac was the reason for both rallies and I think the market is out of ammo for a further catalyst higher for now. The SPX tagged a new 8 day high but NDX lagged and hasn't confirmed the S&P, so hopefully it can jump in the pool soon.
CHNR which I mentioned this morning acted very well and I expect more upside there. Hope you had a great day.

2 comments:

Stewie said...

the rallies feel soft but hey i will take em. how'd you make out today? i gave back a decent $900 gain by over trading my way into a $500 loss. BOOOOO! Hahahah. hope everything is dandy with you Upside.

upside said...

hey stew
i too gave some up-was down a bit from the start and had trouble recovering--choppy day, hard to get direction in this market

About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.