May 24, 2006
Rally or Crash?
While working out this morning - in an effort to do nothing related to the market - I was asked over and over about the market.
I repeat my theme - stock trends and themes that were working for 3-4 years are being smashed. Emerging markets, Internet, Biotechs, Homebuilders, Banks (close) and some energy and metals. That requires time to settle and heal and repair etc...
As a trade, I am sticking with my rally call now because no one else is. Ninety minutes to go and the lows made in the futures are being tested and whacked. NOTE MY CHEERLEADING MASCOTS WHEN I NEED A RALLY.
I bought some QQQQ CALLS AND SPY CALLS, SOME APPLE CALLS AND SOME AKAMAI.
Nothing of real size to make or break my year and I am ready to get out tonight.
These oversold conditions can lead to crashes and as patient as I have been, I would not risk too much here. (HENCE THE HELMET PHOTO FOR THOSE SCORING AT HOME)
Gold is being pounded today and I am underwater on my remaining gold positions. I am just sitting down and am not buying back what I released yesterday. Looks like another range down.