Wednesday, January 23, 2008

Diving, jumping, spiking, and finally, bottoming!

As a half-assed bull, I liked what I see today, especially the volumes and the way indicies closed. Capitulation? Pretty much so. I expect the market to trend up for the next several days, and the earlier you go long the safer and more profitable you will be. But make no mistakes, this is no re-run of the Aug'2007 episode, that is why I am sending my bear costume to a dry-cleaner so that when I get it back a few days from now, I will look like a slick, shinning and well rested bear. Until then, I am going to march with those real bulls and may be laughing with them on their lame-ass bear jokes :)

p.s. notice the money are rotating out of tech, solar and agriculture/fertilizer names into retailers and banks?

13 comments:

Yuriy said...

Care to share which stocks are you planning to get in to?

flyingwabbit said...

I am considering: AMD, WYNN, ISRG, and PKX on the long side.

Anonymous said...

Any thoughts on AAPL? thks.

flyingwabbit said...

I am basically looking to short AAPL with an entry zone 138-150, the key is its MA200 around 144. My gut feeling is it will at least test the support zone 120-125 one more time. Got up too late this morning, or would take a short when it spiked to 142.5.

Yuriy said...

Maybe a good time to short AAPL tomorrow morning?

flyingwabbit said...

AAPL will have another pop tomorrow morning thanks to msft, a DT short can be obviously considered if it could not break today's high. But for SW short, I'll wait for it to come out of the oversold conditions as well as a better entry zone. At this point, I will try to avoid swing short until the current rally runs its course.

Bubs said...

Hey flyingwabbit! Didn't realize that you were posting again. I remember reading your blog early last year and I believe you stopped for a while. I will add you to the reader again.

-Bubs

flyingwabbit said...

Hey, bubs! thanks for stopping by. yeah, I stopped a while last year because of job/location changes. Good to hear from you, will add your trading blog here!

leo said...

Hi, Flyingwabbit, only started to notice your blog very recently. I feel each of your blog worth reading many times. Really enjoyed them. Thanks!

As your were saying yesterday, you think this is just a rebounce, but past 2 days, volumes are huge, many leader shows big hammers (for 3 days actually). Tomorrow looks like another good day because of MSFT, do you still think this will be a bear market at this time? Why would you think this will be no re-run of Aug 07? How long do you expect this rebounce last?

Again, thanks for sharing!

-corgifan

flyingwabbit said...

Leo:
Thanks for your kind words!

I understand that there were some pretty good bottoming actions on Tue/Wed, and Thur/Fri further confirm the bottom. The reason I don't think this a re-run of what happened after Aug.07 rebound is mainly because the market was in solid uptrend then, but not now. So yes, I very much think this is a bear market. I don't know how long this rebound will last, but my guess it could go on for several days. The key is if the major indices can reclaim those important levels (and there are many along the way up), or they bounce off those key resistances and start another leg down.

Anonymous said...

Thank you!

-corgifan

RazoR said...

shorted pot 137

flyingwabbit said...

Hi, Razor:

That was a good short, covered or holding for more?