Yeah, I know we were oversold and nothing goes strait down, but when we rally off the bailout of the largest bank on the planet it truly makes me wonder. When we rally even though our President Elect gives no hint of extending existing tax policy, it makes we wonder. If Obama wants to achieve true rock star status all he would have to do is say "I'm not raising taxes and I will freeze spending." The market it would pop 2000 points in a day and folks would have true hope for change. Bush was good on the tax part but acted like a drunken sailor in Bangkok on the latter. You have to have both or it's just an exercise in futility. One can hope.
I put a couple of charts up that I find interesting. First off, is our old favorite SKF. The stock ripped through $300 on Friday but traded all the way down as low as $161 today. Yes you read that correctly. The interesting part is that it closed right on its 50 day ema which I find very cool. Just one of the million reasons I dig charts.
The other chart is of the DOW. It has only had four consecutive positive days in a row going back to the middle of September. That is truly pathetic action. Will it go for three and a row tomorrow? My money says no. I left early for the hardware store to sharpen my cutlery and I view this nonsense rally as a gift from the shorting Gods.
I ended green on the day as I had a monster trade on an SKF long but proceeded to get stopped on it three times after that. I was guilty of fighting the tape a bit today which was dumb.
Monday, November 24, 2008
My, How We Have Lowered The Bar
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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.
2 comments:
Upside -
Nice trade on SKF - what about it's cousin SRS?
same boat... ?
I cant believe this guy is President. But Clinton and Bush demonstrated just about anybody can be Pres if they want it bad enough. I think everyone is really surprised he is even talking this soon. I think everyone thought he would be pull an FDR and drive mkt into ground before he got into office by not saying anything. Could the Change be that a Democrat for the first time in my life did something for economy and country not his party? If he froze spending and didnt raise taxes the Dems would impeach him. I dont think it matters what he does,just so he tells the market what the rules are.
Gold baby. Too much paper. It doesnt matter if we are in a recession or depression,prices are just a symptom of inflation. Gold can still go up because paper is trash. We are a banana republic until we prove to the world we can be fiscally responsible and arent all crooks.
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