The news this morning send waves of people scrambling to position themselves for what was thought to be a bull rally. Shorts covered in droves again this morning. The talking heads said we were going to have a huge rally.
I saw the pre market trading activity and saw a battle. I would have expected to see more buying in pre market but it was not as strong as one would expect if the market was going to rally big. It was this reason I cut back on what I was going to go long on. I took the position on the UYG in the event the financials were going to run. Of any sector that would benefit the most from the news of the Fed lowering the rate for banks it would be them. So I took only the one position in the view that if there was going to be a rally with great strength then that would be the place to capture it.
But what has happened is that just about every stock gaped up pre market on the short covering and once the market open everything has basically flat lined. No one is buying them up. Bring up a chart for just about anything (even the financial stocks) and they appear stalled. There is no interest out there yet to jump in and buy. Before the day is done we may even see a sell off. Hard to say. But from the lack of anyone buying I don't see any bull rally here yet.
Some people were screaming "bull market", "buy everything". That is irresponsible of people to say that. People have to remain cool and play it for how it looks. If this is the start of a market recovery then so be it, we will be there to catch the real moves once the volatility settles down and we can see our prey with ease.
The market today is a mess.
Cool heads that don't go loading up their portfolios with everything in sight will be the winners. Those that buy everything without looking both ways first will be run over.
Friday, August 17, 2007
The market is lifeless
Posted by Fp80 at 8/17/2007 02:49:00 PM
Labels: Market update
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3 Comments:
hey yo FP
check out the markets charts on the left side of the screen.
aren't they carbon copies of each other ......
huh !!!!
No, they are all different. they just look the same because of how flat the market was today.
Everything was a flatline after the open.
I think that's what seeblog meant, that they all look the same, not that they are the same chart :)
It was a heck of a day at sea, sir! Glad to have the weekend away from the market. Hope everyone goes out and has some fun, we all need it!!
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