Shorting This Rally In The Stock Market
It's just after 11:00AM here on the east coast and I just wanted to give a quick update on the stock market. Stocks are testing the high from 2 days ago but I'm seeing some weakness so I initiated several short positions right here.. Protective stops are right above today's high for the stocks I shorted. I'll have more to say about the stock market after the close.
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
10 comments:
Tend to agree with you Kevin. Rally looks shaky and I have my doubts about being long into a three day weekend.
Everyone is scared about holding stocks. I take that as a good sign. I am long as of the worst of the previous reversal (5/21) and sold some at 1090 today, but expect us to rally through and go for some weeks. With the McClellan Oscillator near historic extremes of oversold, as were put/call ratios and a few other items, seems like more of a bottom to me. Too, the SPX 200 day line is still trending up and we have not broken the February lows, so we are still in a bull market that I believe has simply undergone a nasty correction. I am longer term bearish, but it seems there's been too much panic lately for that to continue right now.
DG
Brilliant call on shorting equity today. I would not have guts to do so today. My money is tied in various energy positions and they did fairly well today considering the dollar/euro and general equity action.
I have to agree with DG that technically this should be a bottom.
Jack
On the money, Kevin. Love your analysis. Has your thoughts on UNG changed with today's activity?
I'm still long UNG with a stop below yesterday's low. I'm not loving this trade but I'll give it a chance to work. I look at it this way, if I am wrong I will lose a small amount of money but if I am right I can do quite well. Lets see what happens.
Boy, didn't take long for me to be short-term wrong---but the jury is still out. If we can't rally after a 1,000 point panic, the vix at near 50, and the other extremes we have seen, the next bear leg has started. If so, look out below! A market that can't rally off oversold and when it "should" is in trouble.
DG
Here comes your rally on the opening, DG.
And here comes my destruction!
Kevin, I hate to sound critical, but I was sure you took the profit before the close yesterday!
I personally don't daytrade (no time).
I was tempted to take the profit yesterday but I figured being that the market closed weak, we might get some follow through today.. I was looking for a gap down this morning at which point I would have covered my shorts. I was right about the gap but it was in the wrong direction!
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