Wednesday, April 9, 2008

Half Full Or Half Empty

The market is in that zone right now, really. I'm looking at a ton of charts here and depending on your leaning, can be viewed in different ways. If you are a bull, a chart can look one way and a bear would look at it the other way. I like to play Switzerland. A bull may look at a chart that is ready to make a break out, but a bear could look at that same chart as a potential double or triple top. Sentiment takes huge part in how I look at things. This is the type of market where failed breakouts abound so you have to careful. It is also becoming a temperamental and choppy market in here. I put out BLK as a short near the opening at around 122 and it immediately traded down 5 points, the stock went back to flat and closed down about 3. Kooky behavior to say the least. I am holding as I think the financials have a little ground to give back. The chart of XBD, the broker dealer index looks as if it could head lower. I'd rather pay lower than $180 for GS if I can. Too expensive based on this economy right now. Scary when you think the only "go to" bank the Fed had for the Bear Stearns bailout was JP Morgan. Is that a testament to how bad our banking system really is? Makes you feel like it's a house of cards.

So much for the China market rocking because of the olympics. What a friggin mess that is turning out to be. If anything, it's drawing attention to what a miserable existence it is over there. I think FXI is starting a rollover here.

Of course the market will be up 500 points tomorrow but this is just what I think about in the shower.

Still short MOO,BLK,AA


About Me

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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.