Nice rally overall, but unfortunately we already are butting against resistance as I outlined this morning. The S&P 500 keeps butting against level 1480 and the chart shows why. 50 day moving average hanging there creating a ceiling. If we didn't have that stubborn resistance sitting there I'd be more inclined to think we get a more serious rally but for now this will do.
Fortunately a lot of individual names are rallying quite severely in the face of this; I think a lot of market participants simply want a flat market at this point. On the positive side, stocks that deserve to go up, are going up as opposed to "everything goes up" or "everything goes down" attitude which we have had for many of the past few months.
Again this doesn't change a thing in the economic backdrop but the attitude in general has gotten a bit too negative, and nothing goes straight up or down. I will look forward to adding some more short exposure if we do get a spike higher here in the coming week, when many institutions stay home and its amateur week. We have a half day Monday, closed Tuesday, than the kids come out to play Wed - Fri (by kids, I mean us) :)
I have updated my top positions in the far right lower margin to reflect where things stand as of noon.
2 comments:
Ho! Ho! Ho! I would'nt even be surprised to see a financials rally next week. Eh! CNBC said the write-downs are over. Restaurants decline must be due to the success of Nutrisystems :)
Time to gear up these short positions indeed!
If CNBC says so, must be true! I am trying to get a you tube video up on the blog to represent what bulls are feeling!
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