Monday, July 14, 2008

Tip Toeing In A Minefield

Am I inclined to short this rally? Oh yea. But I'm not a dope so I as usual I'll be watching the open and how these dogs trade. This reminds me of the guy who is four months behind in his mortgage and he calls Uncle Tom for a loan to stop the leak. Sure, he's good for now, but what about next month. It seems like a band aid on cancer if you ask me. My gut tells me this will wear off by mid morning but keep in mind there are monumental short positions in all of these names. The SEC is going after short sellers now too. It's almost like the plunge protection team met this weekend in a dark basement somewhere to try and get a rally out of the market. I personally feel it's too little to late but what do I know. I trade for the day so I can play these long and get short later, but I'm just going to watch for now.

We have CPI,PPI and Fed minutes this week as well as a ton of earnings reports as well as the constant watch on oil prices. Don't forget that IndyMac got seized by the Feds this weekend. Do you thing the government can save everyone? I sure don't. I think this all reflex for now. Stay on your toes, because it's days like this that all the money is made.


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.