Thursday, June 5, 2008

Great Day For The Bulls

Last night I asked the question, are we going to roll over or rally hard. We got the answer today. I had a horrible day as I repeatedly zigged when I should have zagged and managed to smack myself around like a baby seal. Retail sent the tone early but I honestly thought tomorrow would tell the tale,not today. What does today tell me? It tells me that it doesn't matter what the number is tomorrow because the market wants to go higher. There is record cash available and huge short interest. I thought I was going to catch FSLR short again but oil just went ballistic and the solars were off to the races. I was short my old favorite UYG again, and the group would not be held back. There was a lot of short covering going on, but it doesn't matter how the cash ends up in the register as long as it gets there. There wasn't a lot of battle damage done because I keep stops tight I've had the best seven month run of my career and I think I got a little sloppy and maybe a bit tired and complacent. I kind of was like the $VIX at $16. We all know what happened there. It's good to get slapped now and again as it brings you back to earth and reestablishes all the guidelines that helped you be successful in the first place. I don't like to lose and I don't like being sloppy, today I was both. But enough about me. I hope all you guys had a banner day.

The only guy in town who may feel worse than me is Mr, Einhorn, who talks his book every freaking chance he gets. He didn't convince me that he knows which way is up on his LEH short on CNBC this morning. He looked like he was grasping and he looked like he was hoping. I think the bulge bracket guys saw the fear and went to buys this morning. Still a great chess match and to early to tell, but I am betting on LEH. I just wish I listened to my own advice the other night and bought a few calls.

I hope we get a nice number in the morning to add fuel to the bull case, if we don't I still think the dye has been cast for the bulls.


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.