Tuesday, November 27, 2007

Tip, Toe and Go

Okay, I'm buying a little stock long today, but no clarion calls here yet. The path of least Resistance is by no means resolved, even if there is a hint of strength developing now.

My caribou snaps remain mainly on the drying rack.

We have a topsy turvy affair so far and volume is rising. After closing on the lows yesterday, in many cases new recent lows, we gapped-up today on news we were selling hunks of C-cheese to the Middle East, only to gush again lower following the lower than expected (what were you expecting?) consumer confidence report.

But the market doesn't give a rat's ass about CC reports, despite what you might read. That is old data and not exactly a surprise anyway. If it mattered I would have charged off of my own ass and bought-up this market, since the indices then managed to re-rebound above their opening highs. However, rebounding from the CC report was about as triumphant as swatting a fly; so I am still keen to wait.

Mostly.

And oh, I'm not exactly 'keen' either, since it is anything but keen to sit on one's hands and watch the screen collect dust while doing nothing in the market. Sure, I've fattened up considerably for winter by now, something good, what with non-stop helpings of Oyster bark, hagfish and Brylcreem.

I am shopping for potential longs more than I am actually buying. If we can actually generate a rally I will go heavier in the leadership stocks, but I am nibbling some so far. I was compelled to see that the leadership stocks still by and large above their 10-day moving averages, at the same time so many of the indices had turned belly-up again; closing on their lows and exciting the headline makers Fargo and wide. Sentiment is favorable at the moment and we are rallying on rising volume. New 52-week lows yesterday were considerably below their levels last week, another positive development.

And speaking of sentiment, did you see how rattled Cramer was last night? That is the least megalomaniacal performance from him I have seen from him ever - humbled even! I have to think the lawsuits might be pouring in over there. He was back-tracking his back-tracking - running away like a cat from the litter box who refuses to admit they just caused such a stink.

So far I bought back long my position of ISRG, (ave. 290.40, above where I took it off yesterday). I also bot a first tranche of GILD (ave. 43.48). Some others longs that might be tradable here are AMZN, RIMM, MICC (above 112.45) and ONXX (which I never sold).

AAPL and GOOG cannot be counted out, but they so far have failed to take out the opening highs, indicating a potential temporary fatigue...and since this trade may or may not stretch-out beyond today, or very far, I'll lay-off there until they are indicating otherwise.

I don't mind paying higher prices later - I won't add exposure here otherwise. This is not the time for bargains.

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