Friday, May 29, 2009


don't look at the volume, never mind the man behind the curtain.

This end of day push up here, is about as skeptical as I have seen in a while, with that late day monster push up. They wanted to close > 8500 indu, they got it.

Since the market traded this week off very few earnings, and a good amount of economic data. Regardless of the volume, I think that leaders and laggards need to be respected here, and followed. Because the lack of intervention from things such as (m2m, earnings trough, etc), should help indicate WHERE money is going into and out of more.

WFMI does not look strong relative to the broad market.
ISIL which I mentioned last night was red today.

I trade on technicals and trends (ie: news/earnings/seasonal, etc), and much much less on fundamentals.

Fundamentals and P/E ratios however are NOT things to trade stocks over, short term wise.

However they do admittedly make me "look" at them and put them on my watch list (short or long) and chart them, only then when the chart looks like it agrees, I enter.

I think AEM, SPG, MAR, GS, MS are extremely overvalued here, but they are not being traded that way just yet.
(like wfmi and isil have already started too)

I believe this push up at end of day was very suspect. Maybe we go higher? I don't know. Something seems very fishy to me w/ today's tape. Might come of "perma-bearish".

I will continue to look more to find relatively weak stocks and Pops/gap ups to enter selected stocks short, until the vix re-tests it main resistance line (36 est).

If I do find another NUE type set up, I will play it. The "earnings trade" however is pretty much over here. So it's all back to T/A and sector to market relationship watch basically here to me.

Stocks like ISIL and WFMI that are tipping their hand that they are "non-participants here", look the most attractive to me. (even more than select longs, like nue was)

green = long
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