Wednesday, March 11, 2009

Will Flat Be the New Up?

This is a picture of me, my buddy Todd Stottlemyer, Brian Shannon and my Stocktwits buddies running wild with the bulls in the massive 3 point follow through rally today. Todd was bruised badly and will not be throwing a 95 mph two strike slider to his 2 year old for weeks to come. Brian will will be doing a chart on the massacre later.

Frankly, a flat, sideways, consolidating market is good for the bulls and every day that goes by a base is being built. We need to get through the 740-742 level with passion for me to become short term bullish, after all this just a bear market bump. I've been writing for a couple of weeks now about the lack of follow through in this market and how it is failed to put together two positive days in a row. Well, it did today, by two points. I laugh at this pathetic attempt, but the bulls will take it.

I had a very nice day both long and short, and I plan on playing the field, as always. Personally, I think we cave soon, but I will be watching the aforementioned S&P level for a push back or a breakout. If the market fails there I will release the hounds of hell on the short side, if it breaks higher, I will be very long. Hope you guys killed it today.

P. S One of my favorite shorts on a bounce and a failure to break out is AXP.


David said...

I feel like a complete dork at laughing out loud and my wife thinks I'm a fool for repeating the first paragraph out loud but that was amusing.

- David aka Killaarmy (in the stocktwits universe)

Brian said...

good stuff as always my friend!

Tony said...

Not arguing with your analysis, just wondering how COF matches up with AXP in your opinion. Both look dismal. What metrics do you use to differentiate which would be a better short candidate, or is it merely "feel"?

Great blog and twits, btw.

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.