Tuesday, December 01, 2009

Stock Market Update

Stocks were up today with the Dow and S&P making another test of the recent highs. As you can see in the above chart, not all indices are near their recent highs. The NASDAQ and Small caps are still diverging and as long as they continue to make lower highs, I will stay with my short positions.

Not all stocks were up today. Some of the major stocks such as GS and several of the banks were actually down. As I said before, this rally has no legs behind it but I must admit being short these past 2 weeks has been very difficult. Even though I am pretty much flat on most of my positions (up small down small) it's been very challenging to remain short with such a weak dollar. Seems like every night I check on the dollar around 1:00 am find that it's up a bit. I then go to bed and wake up in the morning to find that the S&P futures are sharply higher with stocks indicated to gap up at the open. That's happened a few times to me these past 2 weeks. Not a good feeling to say the least!

Given the fact that their are so many stocks not near their recent highs, I will remain short with my protective stops in the market. Enough said.


Anonymous said...


Thanks for the updates and the analysis that you share. I'm in the same boat. I still have my short positions and I intend to hold them until I get stopped out or something drastic changes. If the entire market begins a new downward trend as I expect it will, then I'll add to these positions.



Anonymous said...

Thank you for your technical analysis of Russell 2000. Based on your analysis, I am also shorting IWM using TZA(ETF for Direxion Daily Small Cap Bear 3X Shares). I am using TZA because I am not permitted to short using my IRA account.

What is your opinion of using TZA (ETF)for shorting IWM?

Thank you very much.

Kevin said...

Transports and semis up strongly today. I'm still short but definitely a weak hand! What are your thoughts on today's action Kevin?

Kevin said...

I still have my financials short. They are actually very weak but I did cut my Russell 2000 (IWM) short position in half today. All of a sudden the small caps got strong over the past 2 days.

Kevin said...

thanks Kevin


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