OK, folks, today was what I expected for June, we are looking more and more like a breach of the March lows is coming sooner rather than later on the DOW and I expect the Nasdaq to follow suit. Technology won't hold up if the rest of the economy tanks. Unfortunately thats the way its shaping up.
We're looking at shorting FINANCIALS (kill the lowest hanging fruit first!). Then we'll go from there. LEH is gonna get cracked, GS is cracking already and the banks are pretty much doomed here, I believe. Every #s report they rally us HOPING that the # will show that the economy is finally turning! YEAH! NOT!
It's not gonna happen, sorry. I wish I were wrong, trust me. It impacts me as much as it impacts everyone else. The value of my money is less, and keeping you guys happy is harder. But, reality trumps hope!
I suspect unless there is some news we get a gap down (a gap up would be a serious short without any substancial news!). If it gets ugly we could get a near term capitulatory move and then an up move and then a nice bounce. Volatility is thriving and that should mean nice ka-chingos for us, so stick around and if you aren't a member yet, make sure you take the 2 week FREE trial or join one of our other services. This is a market rife with opportunity.
In the meantime, we're been approached about taking Trend Fund and Trend Trading to Win public, merging with a shell. So, who knows, perhaps we'll be calling our own stock short (that's a JOKE!)! With Investools (the model we're using) having a market cap north of $400 MIL, hey, why not! We shall see, life offers many twists and turns! If anyone has any insights or interest, feel free to email me at - firstname.lastname@example.org
I think in this market people need some guidance and a safe place to learn, that's what we do best! I think that the market is going to be VERY rough for a long while for anyone trying to invest. You can listen to these pundits all you want, or you can listen to reality. Reality says the economy is shot for the forseeable future and you need to be SHORT here. Fantasy says you should buy buy buy. Sometimes there isn't a bull market anywhere. Yeah, energy, commodities, but at some pt. the underlying stocks will crack as well. That's been my experience.
I stick with my thought that short LEH, short GS, short some technology (TWM looks like a nice BUY here since its the inverse (double it) of the Russell.
In the meantime, have a great weekend. Peace be with ya, dudes and dudesses!
Michael "WAXIE" Parness
*My movie, CRAZY FOR LOVE is debuting in Blockbuster early next week, pick up a copy and write some nice things, if ya like it, on IMDB.com