Perhaps my vision that bad news = good news is coming true after all. Whatever the case investors were eager to buy the dip in anticipation that the Fed and government will 'save the day' I am sure. Because it's been working like a charm so far.
Whatever the reason the "action" is good, so I want to get back some names I sold off on breaks of support the past few weeks but are showing recovery.
I highlighted Netflix (NFLX) earlier this week in another piece, and said it looked poised to potentially move back over resistance. Which it is doing a nice job of today - I thought the reaction to earnings was nonsense but had to respect the technicals at the time. I was hoping for a move down to $90 to make a purchase but that is not happening; so instead I will restart the position with a 1.6% exposure on the break back over the 50 day moving average. (the 20 day happens to be in the same place)
It looks like gold is reacting once more to the anticipation of the Bernanke printing presses so I will rejoin my Powershares DB Double Gold Long (DGP) with a 1.7% exposure. Same thought process as Netflix in fact, technically. (chart is for gold since that is the underlying equity)
For both of these I will have a relatively short leash and if they break below the levels they just broke out of, I will be back out.
I was thinking about buying some index positions on the 'dip' but instead will just wait for a clear move over S&P 1132 or so (if and when) since I've been smacked around in the churn lately. Instead will just concentrate on individual equities/ETFs until we get out of this 1115-1130 vortex.
Long both names mentioned in fund; no personal position
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