Tough call here, either we just ignore Friday's action and bust to new highs, or the top of this move, which would be about 1225 I think, holds as a wall and we really do get some type of pull in. Very tough to call a top here, but I'm not in a hurry to go long either. Definately want to wait for confirmation either way. I do think move higher in GS is shortable (I own very small lot of puts on it (10)). This is the first real test of the markets mettle here, so it'll be interesting to see how it pans out. Also, AAPL reports this week (I own a few puts on that one as well), and how that reacts post earnings will also be a good indicator. There are a few biotechs I am watching for upside, tho.
Man, I tell ya, we are in no man's land. It is amazing, though, how relatively quickly things can change. Last year was the opposite where every up move was met with selling, now every down move people scream "buyyyyyyyy!" As though Friday's 125points was this huge move down. It's not obviously, particularly relative to the like 80+% move up we've had off last years lows.
Will be posting about some FREE classes this coming Thursday. We are trying to do more FREE classes for several reasons, #1 to introduce people to what we're doing, #2 people are struggling and need to check things out before jumping in.
Will post more on the classes shortly...
Michael "Waxie" Parness