-------------------------------------------------------------------------------- Quote from makloda: Did the huge correction occur yet? -------------------------------------------------------------------------------- ummm... no. All clear!
When you have price reaching a right peak, then some of the time there will be buyers waiting right above the peak ready to buy. The reason for the advance over such a right peak is usually short covering. For example, IBM. Price reaches the right peak and then real buyers take the wand from the shorts and run with the price. A counter example is AIG where everytime the price reaches a certain point then plenty of sellers are waiting. At this level on the SPY, the SPX or whatever you want to call it, then there will either be buyers to take it over the right peak or sellers to pound it back down. If I were the manager of a fund, then I would wait for it to go over the 1600 level to be certain that the break is for real and then the price target would be 2200. The economic conditions are deterioating. The Diamonds has a reason to keep going(Euro keeps going up), the $NDX has a reason with growth stocks like Amazon leading the way, but the SPX. Nah. I dont think there will be buyers at the other end of the peak. The SPX did reach an all time intraday high today, but then retreated back. In 2000, the reason why the indexes retreated back is because economic factors had been deterioating for a year but the trading world missed that news. Then the cold reality came in a matter of days. I am comfortable in my short positions and have made money even in the face of this market. Leading stocks will continue to go up until they wont. However, there are plenty of other stocks ripe for shorting on the day. Circuit City, Brillian, Motorola, Radioshack, etc. I made another 10% today through key shorts and key longs. Im happy with that return.
What about those short positions you were praising a couple weeks back. RIMM, MA, AMZN and AAPL. How were you doing with those?
The market could go up 10% from here, and you will still get to witness his dissertation of why he is right and the market is wrong. He is the only daytrader I have ever heard of that justifies his day trades with fundamental analysis. He truly is a wizard of wall street.