Conundrum

The market appears increasingly vulnerable to me and I am tempted to make my move on the short side. However, I will be travelling from Friday through Monday and I could see one more push higher. I am yet undecided.

5 comments:

PJ said...

Will probably close on the high side today, should be a reasonable entry point.

PJ said...

BTW, my conspiracy theory is that the government is supporting the stock market through the Senate cloture vote on the health care bill next week, wavering Senators need to be convinced a recovery is in progress to vote for it.

That would suggest going short next week.

However, I'm short now. I don't expect more than another 1-2% up and I'm willing to sit through that. Might add to my shorts on passage of the health care bill.

Anonymous said...

Just set a stop, 50% retrace on the S&P *should* hold the first time it is challenged (of total move 10/11/07 to 3/6/09). Set your stop above there... 1121.44

Good Luck,

John

Tsachy Mishal said...

Shorting a rally into that level would be a no brainer. Beside the 5o% retrace we would be maximum overbought if we got there and sentiment would likely be extreme.

PJ said...

I just covered a bit of my shorts, as I expect tomorrow's first-time unemployment claims figure to be the first headline number with a four handle. Will re-short about 10 am tomorrow.