Tuesday, March 23, 2010

Short! Short! Short!

March madness has new meaning for me. It is absolutely amazng how over driven the market can get in either direction. I have stopped watching the market on a minute by minute basis. Primarily to preserve my sanity - but more importantly, to preserve my short positions. I did watch the market today and was so very impressed by the move up and I am now convinced that we are in for a very viscious fall. So much so that I have doubled my short position in anticipation of the move. Wow! I just can't see the market advancing much more. At best, we grind a bit higher only to shed 10% -15% in the near term. No need for deep technical analysis here.

7 comments:

Paulus said...

dave,

The video does not seem to work/link

David O said...

Hi Paulus,

It should be ready in about 10 minutes - It is still uploading on YouTube. Not much today - just a casual comment!

Cheers.

payline said...

Hi David , glad to have you back safe and sound .
Any selling should trip the sell on Rsi on the daily .
our friend the $ gets going ,up in its wave 5 , it would help for sure .

This could be one of those times that a small sell off could go, could turn into a larger one ,
the levitation device has it limits .( I think )

Good luck out there . The hell with being careful , I think we are all past that point :)

David O said...

Hey Payline,

This is absolutely a crazy market and I can not help but laugh. It is amazing how far it has run with no resolution to the key issues that plague the world economy.

I will say that I am officially going to throw in the towel if we do not see a turn around in the next few sessions. This will have cost me almost 6% of my total asset portfolio - but a lesson learned for sure!

David O said...

Some very good analysis that I happen to agree with:

A popular ETF newsletter or something...

I too believe we are witnessing 2007 all over again - right now. She is going to implode very soon.

payline said...

David ,
I hate this but I think its a triangle,
I think the end of the wave was on 3/17 , . 3/19 would be (a) , yesterdays high at 1174 as (b),
The down move today start of (c).
Today should have add more getty up ( down ) , thats whey I think its forming a big sidways triange.


Thoughts ?

David O said...

Hey Payline,

I think we are in a broadening formation right now on S&P, however now is the time to look at the following sectors:

Financials
Tech
Energy

We are probably headed lower - down to 1150, before the final climatic push to this crazy 12 month run. After that, big correction.