I Done Messed Up

It looks like I made a mistake by moving away from my net short position. The reaction to the news is more important than the actual news. In that context the inability of the market to rally in the face of good news is bearish. Last night when the futures barely budged on Apple's tremendous beat, that was a clue that there was alot of supply and few buyers left. I remain long pharma and short SPY.

5 comments:

MarketCynic said...

Don't worry, this market will give you another chance to short soon, probably tomorrow. I expect a rally in the 2nd half of the trading day.

Anonymous said...

That mistake would be cheap to correct, we are not that far off the highs. We got within 6¢ of my SPY stop (2% above the Sep 23rd high) but I am still safely out of the money.

Frankly I am uncomfortable that we are sitting up here. Yes, it is bearish that we are not making much higher highs on these blowout earning, but I no longer have a cushion. I am in options and have given myself a little leeway but I won't just pull my stops.

It would be a shame to survive JPM, GOOG, GS and AAPL earnings just to get stopped out on a good YHOO number. This market should be lower by now but it isn't. That tells me my days in this position are numbered and you will get better levels to short from.

JD

Anonymous said...

GreaT IPHONE sales should help T later this week. Agree?

Anonymous said...

Tasachy, would you still go long pharma today? Or wait for pullback? Do you like MRK or BMY?

Tsachy Mishal said...

I own MRK, LLY,SGP and PFE , not BMY. Goldman thinks BMY is a takeover candidate but trades at a higher multiple. I took profits on my short term positions yesterday. If the broader market corrects, you will likely get a better chance.