When it rains it pours. There’s all kinds of bad news being thrown at the market today, but it’s hanging in pretty well… so far. First, George Soros was on CNBC talking about why he is short the dollar. Next we had some mad cow news hit. Then, to top it all off, it was revealed that the U.S. is raising the terror alert level to orange. After all of that I have to be impressed that we haven’t sold off even more. But I’m not really focusing on any of that news. The real issue is what are all the people who bought stocks during the last two week going to do now that they are under water. It’s likely that many will try to sell if and when the market rises and allows them to get back to a break-even point. Others may start to panic soon and just dump their stock. I’m expecting to see some panic real soon.
Michael, it looks as though the sentiment HAS shifted. We needed a big headline like the dollar’s woes to turn it. The S&P 950 level was powerful too, just as i expected. I think it’s too late for the maniacs to mount an effective comeback. The S&P may get back to 935 before June, but that’s about it. IMO. Do you have any short positions?
Mike L
Mike,
Sentiment has cooled off a bit, but those damn bulls are still propping the market up. I’m still holding 4 shorts. I’ve been in 3 of them for about 3 weeks now! I’m finally back to brek-even. I’d like to hold them through the weekend if at all possible. You nailed that 950 resistance last week. Good call!