Don't you just hate it when we go on a global diet? Yep,
I mean we really must have been pounding the chow line starting about two years ago for these stocks to have gone so parabolic. Well now that we have all joined Jenny Craig, will these stocks go back to where they started? I highly doubt that and I am trying to be cute here. However, this is one of the most "crowded" trades I've seen since the tech bubble, and it will take a while to unwind. I think this sector trades lower, much lower, sure there will we bounces along the way, but the punch bowel is going to another party, I just don't know where--yet... Take a look at this chart of the basic materials.
Saturday, August 16, 2008
A Picture Is Worth A Thousand Words
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About Me
- upsidetrader
- 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.
5 comments:
They're all good shorts. Plan to keep them short for a few months..The 1yr, 6-mo , and 3-mo industry carpet charts look like the plague virus slowly overtaking them.
Re: Utilities
SDP looks like a good choice.
look at the 2 year chart on $util
Hey I enjoy your blog...what will you call your blog if we are in a Bear market for the next several years? LOL
Stuart
MechanicalTrader.com
MT
I guess it should be "downsidetrader" lol
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