The Lady Is A Tramp
As the experts continue to assert that
they have everything under control and assure us that the market can’t
possibly inflict any more pain on the unsuspecting public, guess what happens. Yes, they make jackasses out of themselves again.
It seems as though each week is greeted
by a new “train is leaving the station” fantasy or a
semiconductor upgrade that gets the futures in a tizzy pre-market and
creates a 1-3 day rally. These rallies have been systematically
met with intense selling each and every time they occur. Can
anyone say "distribution"?
We have chosen not to engage in such
sensationalism, but rather, have been methodically evaluating the
market during each week and profiting greatly from it. From
yesterday’s commentary: “My initial target for the pullback
in the S&P 500 cash was 1195 which we touched…It now appears
that a deeper retracement is in the cards, perhaps to the 1180 to 1185
area. The fate of the Nasdaq will really be in the ability of the ‘buy on the gap down, regardless of nuclear war,
etc.’ crowd
to save the day early on. If they are unsuccessful in producing
another panic buying episode this morning we may be well on our way to
testing the July lows.”
Indeed, this scenario played out
exactly as suspected. Being tuned in to the market’s “bad
habits” and evolving trading personality is extremely useful in
anticipating the true direction in which it is headed.
Those of you who saw Dr. Jon Najarian’s
post a few days ago about the big short positions our office was
taking down in
(
KLAC |
Quote |
Chart |
News |
PowerRating) and the rest of the semiconductors must
be laughing yourselves to the bank. Shorting the semiconductors was a
very unpopular thing to do 3-4 sessions ago because they were
everyone’s sweethearts. How did we know to short this (then) extremely
strong group at that time?
Because the lady is a tramp.
Goran