Perfect Vision

Using 20/20 hindsight the call buying last week and this morning, combined with the inability of the bulls to make any headway was the proverbial "canary in the coalmine" that the market needed a rest.

7 comments:

Anonymous said...

How long of a rest? One day?

Anonymous said...

all week. nobody expects a big correction so it will happen now. people buying dividend issues today like idiots, and past week doing lot of rotation. this is sign of desperate hedge funds trying to find returns, will bite them all in ass.

Tsachy Mishal said...

The market has the potential to go down until its oversold but that does not mean that it will. If we did get oversold I would probably put myself in a decent net long posture as I don't expect giant moves in either direction.

Tsachy Mishal said...

I would point out that even if we do get oversold its unlikely that everyday will be down.

larry said...

do you think the metals bubble is ready to burst? or do we have a way to go?

Tsachy Mishal said...

I don't trade the metals. There was so much talk about them everywhere last week. In my experience that usually marks a short term top.

This certainly is not as dramatic as the top we saw in oil in 2008(which was a long term top) but not every top is the same.

Anonymous said...

this is a type of market which is ripe for black swan type events.