Tuesday, February 10, 2009

I Was Taken to the Woodshed

I never dreamed there would be such an adverse reaction to a stimulus package being passed, but I was wrong. When I posted to sell LVS before earnings I should have been posting to dump everything you had before the stimulus went through. Then I realized something. The market has remained almost unchanged since the Dow bottomed at 7500 weeks ago, and people have played the impending final stimulus much like impending earnings releases; play the ride up then dump at the event.

Anyway, some of the trades I was in have now become a little bit of a longer investment then what I had originally planned. And there is no way I am going to touch my reserve bottom-buying cash to pick up some bargins at this point. At least not until I see if the Dow is going to ride back down to 7500. Albiet that's a worst case senario, but after the spanking today I'm not eager to play again until I see some recovery, and I am hoping that comes tomorrow. I'll be watching the early morning futures very closely.



Have a Good one, Roger

2 comments:

  1. My 2 cents: SA is problematic as it only does Buy calls. In such an environment where the market has yet to bottom (and not for some time i believe), I look at other factors and sources beyond SA. With 3 straight days of positive results for the markets, i basically knew that yesterday would be a sell-off, even with the stimulus package. We are still in a long bear market and I believe it will be a long while.

    -Phil

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  2. @Phil
    I do believe we have seen a bottom formed on The DJI30, but the market action is very unstable. I actually use several resources myself, and SA points me to some equities I might otherwise have overlooked. I love to hear other's insights since I am constantly in learning mode myself, especially in this market. I thought , however, that SA gives sells as well as buys, although both are pretty general in nature.

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