Saturday, April 11, 2009

Weekend Wrap Up

I was trying to think of a way to sum of the state of the US economy yesterday when I stumbled upon this picture. You can go on and on about all the things the government is doing to try and stop the bleeding, but sooner or later that cow is going to die. With it so will the market.

On thursday I had another positive day but considering the big up day my longs really didn't do all that much, they were all up around 1-4% range so that was a little disappointing, but on the other hand my shorts were barely up with HRL ending up down.

In the morning I got stopped out of my DPL short at 23.42 which proceeded to go steadily down for the rest of the day closing at 22.75, but I have to stick to my stops based on what the chart is telling me disregarding any emotion I may have. I also shorted AAPL as it approached a 38.2% retracement and I believe that if the market decides retrace Apple will follow it closely.

I'm still leaning to the bullish side but very caustiously, I have some tight stops on my longs to protect my gains, but this market look like it will be seeing the 870-880 level soon. On thurdsay it broke through an important downtrend line that had been developing since October and is coming up to that key level of ~875 which is a 23.6% retracement from the bottom converging with a fib fan drawn from the 1932 low. This will act as very strong resistance and I am expecting a temporary bounce down from there.

1 comment:

  1. I hope you know that photo is racist, why is there a black bell around the "white cow" ...hmmm coincidence, I think not. Notice how the farmer is also black in this photo??? When is the last time anyone has seen a black farmer? Now that agriculture is going downhill I guess we're going to start allowing black people into the farming industry and then lay the blame on them.