Stocks Rally - Small Caps Lead The Way
The stock market rallied today with small cap stocks leading the way higher. Semiconductor and Airline stocks were also strong . The S&Ps (SPY) closed right on its 50 day moving average which may act as resistance. Volume has been declining over the past few days but overall the volume has been above average.
Some of the ETFs that I spoke about yesterday continue to remain weak such as EWI, EWA,EWJ...etc. GOOG was also down today after holding the 520 area which I've spoken about several days ago. As long as theses stocks stay below Monday's high I will remain short.
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2 comments:
I have been shorting the S&P since March and endured large paper loss until the crash on 5/6/10, which
I turned the loss into a handsome gain. I turned around and long S&P
after the crash, fully expecting short covering.
The bulls may continue to bid up the market,short-stopping the bears,given the zero interest rate. The market may also possibly go to new high. But the fundamentals have not changed: the big banks are insolvent, governments are on the edge of going broke, and consumers are still deep in debts.
People will slowly bid up the market, then the market will fall violently as people run for the exit. The question is whether you have the capital and the psychological holding power to stay short. Another strategy is to short the out-of-money calls (OEX,S&P,etc) and keep on rolling forward as long as the market is up and option premium is good.
Good job Ben... I keep my stops tight so if the market continues to rally, I will be long gone!
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