Before I get into today and tomorrow, I just have to get it off my chest. Now maybe it's just me against the world, but why hasn't anyone brought up and made a big deal that, in my opinion, GS basically stole $18 BILLION from the US Govt and the US taxpayer. How in the world can they just take $18 BILLION for debt that was probably worth no more than 20% to 30% of that? Even if its 50 or 60% that's still a helluva lot of money. They all went nuts over AIG $170 MIL and wanted to lynch them, what about GS? We have serious issues in many areas, but this is a large part of the problem in my opinion. There is so much smoke and mirrors that we can't possibly dig ourselves out. It is amazing to me that GS is trading at $112 and every other financial stock is gasping for air. And, I am NOT short GS mind you. If anything I'd be long it here, as much as I think they are filthbags and slimebuckets. It must be true, they must be the smartest guys out there, or at least the most corrupt. They managed to help put BSC, LEH out of business and are basically the last man standing. MS don't look so hot longer term. Or, perhaps its coincidence that this has happened. One thing I'm not is a conspiracy theorist, but I find it hard to believe that there wasn't some coersion going on with GS right in the middle of it. But, hey, maybe it is coincidence that the day GS was about to go under like all the rest the FED came out and saved them. Perhaps...
It's funny, I listen to all these pundits and they all say the same nonsense. Today they are saying "the market has changed, its showing strength, its resilent!" Or, "today's action was very bullish".
What rubbish. Yeah, its very bullish that on the slightest notion that something is wrong we sell off nearly 300 points intraday. Yeah, thats STRONG baby!!! Wowsa! Oh, but we rallied end of day and that shows we are really strong!
No, you knuckleheads, it doesn't show anything, what it shows is that we have an upward bias into two very important TRENDS, 1 being end of the month window dressing and the 2nd being mark to market decision next week.
Now, I could be wrong, but I am definately trading that news, I think we sell off HARD, and I mean REALLY HARD unless there is something unforseen news wise. Futures are up pretty big as I write this so it appears we'll get some more early strength. I would think we may get the same setup as today, with a fade of an early rally followed by buyers stepping in. I thnk we almost have to see the other side of 8000 on the DOW now and they can easily drive the financials even higher. I sure hope so cause if I'm right about this setup of selling the news, we are gonna get one helluva short to rack up on. And, if I'm wrong we'll stop out with a small loss. It truly is a nice setup as long as we hold up in the market and rally into next week. Going to something like 8300 would be a really nice entry for shorting on the news, that would be sweet. Get WFC to $20s and BAC to $10s, I think we'll get some crazy good shorts on.
We shall see. I'm laying low but that will be something I am planning on playing. I wish I was playing heavy here from the long side, we are definately a buy the dip mode right now and its fairly safe, I think, to play that way here. I wouldn't chase a 100 pt gap up tomorrow, too many people are bullish again now. This is a suckers rally into mark to market I believe. We shall see, babies, we shall see.
Thanks for all the support, I'm getting better slowly, but not so surely. Pain is a great motivator and I'm motivated to take it easy. Enjoy the bullish ride, next selloff is gonna be a doosey. I've said it 1000 times here, you have to respect the tape, don't fight it.
You see our CLF for those that had it last week? Dang, we were a day late and a dollar short! I knew it would take off, and boy has it. If we rally harder look for $25 on it potentially. Some nice call buying on it today, so we'll see, its lagged the move and could have some more upside. I'd wait for 10 am rule or a pullback to entry, though.
Enjoy and RULE!
And, get my book! www.amazon.com and punch in RULE YOUR FREAKIN' RETIREMENT, by Michael Parness and order it NOW!