Monday, March 24, 2008

There ya are, me little rallerina!

Well, we certainly nailed it! Market did indeed rally, though much more than I was hoping for. Now? We probably pull in a little. I think we get a little range to break out of to the upside.Unless, of course, there's some news that cracks us again. That's certainly possible. Baring bad news I do think we can scale higher without that much of a pullback. Ultimately we go LOWER, but for now we still look like some back and filling and then potentially a range breakout to the 13,000s. From there, if we even get there, I would think we get a nice selloff and break to the downside.

Here is the problem, its kinda a perfect storm eventually. You have the Fed bailing everyone and everything out. Wonderful, hurray for the Fed. Unfortunately its going to catch up, it has to. The Fed can't just print money with no ramifications. People are giddy that the Fed is doing all this, but its politically motivated and it can't do anything but put a bandaid on the issues. At least thats my take, but I'm just a trader and not an economist.

In the meantime, we'll trade and reap the rewards!


strader50 said...

Still a new trader... really agree with your view on the Fed and understand why it makes sense for longer term lows. However, received an email from you suggesting the RUT sept puts.. if you are in these do you just hold or do you take your loss and rebuy once this rally is over???

Waxie said...

strader50, the RUT puts were called a few weeks ago if I recall. We had a really nice selloff, hopefully you took some off. May I suggest you try the chatroom for a month? Trading this nutso market week to week could get you in trouble. We are pyschotic here with this market, its better to trade it closer to the vest so to speak if you can. I said we'd go up this week, we have. I think we may get some more upside here, so be careful for now. We should go down eventually, but why buck the tide? Peace out, and rock on!

streetman said...

hey waxie,

you seem to enjoy a good conspiracy theory...

Fed bails out financials from liquidity crisis... in return financials sell of commodities to help ease inflation.

to out there?? what do you think??

streetman said...

i personally am long gold... via GDX since wed last week using a put calendar spread with bullish bias