Thursday, May 04, 2006

A Great Day! (for the bulls......)

Will wonders never cease? Take a look at the Dow Transports ($TRAN). Up well over 3%, fueled in large part by EXPD, which itself was up nearly 20%. And the Dow Jones Composite had a.......


Ugh! I guess this bull isn't so wimpy after all!

A strong retail report sent stocks solidly higher. And the ever-strong sectors stayed strong - - oil.....gold.......copper.

I was taking a look at some long term (multi-decade) charts of gold and silver. They are worth a glance. Take a look at the Fibonacci levels, and notice how both markets are coming right up against resistance. Worth noting, since these metals have been on a trip straight to the moon for quite a while. Here's gold......


....and silver......

5 comments:

Kapil Khanna said...

Markets do what they have to. The question is, what do you do when they do.
From a previous post, you mentioned you are short 25 positions. How many have stopped out, how many met your targets how many did you square off?

cristri25 said...

why was the nasdaq 100 bullish % index down today ?

Mantra said...

Here's a thought based on pure market psychology:
You are absolutely right and whoever shorts these sectors right here and right now, make a ridiculous amount of money over the next few months
OR
you are wrong, but partially right, in the sense that when you cover, it happens to be the absolute top. That might be the best time to go short!!

Suggestion: Why not bet half now and half when Tim covers. It's better than losing your initial bet all at one shot.

Upside: Half the bet might make you half the amount you bet (for sure there is a 100% gain if he is right, I'm still leaning towards bull but he maybe right).
Which is a great trade on all accounts.

Worst Case: You lose your initial bet in 2 segments. Trust me it's a lot worse when you lose a lot in the first shot and don't have the stomach/capital to hold on even though you are right.

PB said...

The only thing holding these markets up right now is the expected growth from China. The whole world has sure placed a lot of weight on the poor Chinese' shoulders. Just a reminder that China is still communist. It looks like after all that communism wins? Good ol' capitalist USA can only stay relevant by fighting the Muslims, buying cheap Chinese goods and expensive Arab oil. Yup, it's a f.cked up world!

John Wheatcroft said...

Communist? China is Communist? Since when? The government might be "declared" Communist but China - China never was, never will be, never happen. The "poor" Chinese - before the European learned how to wipe his butt indeed probably before he even crawled out of his stinking cave the Chinese were washing their hands before they ate their meals. The Europeans brought "occidental values" to the Chinese and the Chinese taught them how to be civilized.

The world has always placed a lot of weight on the Chinese shoulders and, fortunately for the world, they have been able to bear it. (In their own interests, of course).

Poor Chinese indeed. And in case you are wondering - I am American of European descent.