Rally today was powerful BUT some red flags were seen. Firstly it was technically just fast money working the upside and not real funds who need to put money to work and secondly it seem it was fueled more on the talks of instituting the uptick rule and possibly stopping shorting on the financials again.
Now what is funny is as I type this, Cramer is on TV calling for a bottom, hmmm wasn't he saying last week we heading to 5400, geez this guy is ALWAYS wrong just do the opposite of what he says.
The market has been up 3 days in the last 4 weeks and anyone who thinks this is the beginning of a new bull market you will get shot down again. For the few of you who email me on a regular basis I called for a bottom between March 4-9 I guess I was right on that one but i do see a lower low setting in later in mid to end of March, so we should check back with Cramer next week sometime when we might be lower, WHAT A LOSER!!!!
Let me show you something folks, today movement was all finance stock based because Citibank claimed they were highly profitable in the first two months of this year. I want to see that quarterly report because there is no way they can show a profit without some padding of the cash somewhere. Maybe all those businesses they sold they are saying that is profit when it is not from operations.
Who cares I believe the next time we test the lows we get the rally we all expect. This little upside should be capped at 740-750 level the most if it can get there.
MARKETJEDI
Tuesday, March 10, 2009
Values to watch
On the upside we have 734 on the S&P to watch with some minor resistance @ 724 the gap from over a week ago. Folks I do think we will get a monster rally soon but this is not it. I still think we have lower prices then we get a meaningful rally.
Oversold Bounce
We have seen this so many times. A dramatic snap back rally in a bear market. The 10 biggest point up days were in bear markets so that should tell you something. Anyways dont step in front of this, all this does is give the bear some room for their next assault.
Banks-
Banks seem to be getting some bid overseas but hmmm we mentioned it here over the weekend to short SKF as we expected this to happen. Should last at least a couple of days then back to the downtrend
2009 Short List
No excuses!!!!! about two months into the list and the list is profitable for 8 out of 9 plays. Congrats to those who played them
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