These Things I Know
There are several
things I know about life. .I know that professional wrestling is
fake. I know that the Cubs and Red Sox have no chance of going to the World Series even though they are both doing the big tease right
now. I know that every time I turn on CNBC, I will hear Maria Bartiromo say
“This stock is on fire!”…and then watch the stock go up .25 cents. I know that Joe Battipaglia will be bullish even if the
Dow goes to 1000. I know — and am thankful — that Al Dunlap, formerly of
Sunbeam, was nabbed today for his part in out-and-out fraud. I know that my son Aaron will never eat
broccoli. Finally, I know the Fed had to cut rates in order to keep the markets behaving well.
WHOOPIE…GOLLY GEE WILLAGHERS!
My first point is that I continue to believe the markets are putting in a good
effort. The technical underpinnings are still in good shape. BUT, I have one little nagging problem that I continue to think about:
ALL MAJOR INDICES ARE STILL DOWN FROM JAN 3, THE DATE OF THE FIRST RATE CUT.
This does give me pause and flies in the face of history. It keeps me looking over my shoulder every day for any technical
breakdowns. Yeah, I read Goran’s reports also.
Now that the rate cut is out of the way, I do my usual…forget about it. It is past news and the near-term reaction is
over. I will just continue to watch the tape for clues.
Here are a few interesting, possible potential shorts. I would go after them only on rallies into resistance.
(
HWP |
Quote |
Chart |
News |
PowerRating) looks like it has died. Poor Carla. Any rally into the $27 level looks tempting.
(
CHKP |
Quote |
Chart |
News |
PowerRating) — these wide and loose patterns have paid off well on the short
side. Once again, look for the rally to short.
(
AREM |
Quote |
Chart |
News |
PowerRating) sticking out like a sore thumb.
(
CMA |
Quote |
Chart |
News |
PowerRating) right back to the gap. Light volume on the rally.
First off, no one should own any of these stocks…and of course close stops on every short.
Gary
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