The only good news is that I am worried. If I am worried, this means everyone who is short is worried as well. If we break 1120, there will be a HUGE short covering event - the buyers of last resort. Only the most resolved shorts will survive.
In retrospect, I wish I would have waited before putting on my full position. I also regret not holding out with my insurance. I let 70 points go for a relatively small profit. However, these events are in the past. Now you have to ask - if you had no position today, what would you do? Would you go long? I would not.
Good luck - and try to survive the final stages of this bear market rally.
4 comments:
You raise a great point , even thow we played that tape in July on the HS top , EVERYONE was short on that one ( I got fried on that one). and latter the little B2 that reversed. ( I was long on that party) I didn't think of 1120 as a possible Bear trap .
I suppose it will come down to where "they " decide to plunge from.
I hope we fill the oct 3 2008 gab and fall off 1099 , Logic tells me we could go sideways for months waiting. but trending down.
I hope to buy you the proverbial beer when we fill one of those many gaps from the rally , on the way back down.
The sooner we can re learn that anti growth and anti real Free Markets policy dont work and people get pissed about it . The sooner we can get on the right road.
Be good and Be careful
BAC and GE are a better reflection of the state of the economy. Let's see if these results put a damper into the rally...
Bac , I think of the Dir Straights song from the 80s , They get there money for nothing , but the loans are free,
33 billion in bad loans , 11% bad credit card , ect ect
Ge , not that pretty either .
Well, I'm going to short the bounce when we get it. I think we're going to get another failed attempt at 10K at some point. Otherwise, I am going to wait for 1040!.
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