Friday, March 20, 2009

Upside the Head

I've kept quiet lately, but frankly I don't anything overly terrific going on at the moment.

We're in a choppy state and this could last several more days (if we're not careful). Smart cats go fishing, then see what the market looks like next week. There are several factors suggesting upside in the intermediate term.

Those factors include a substantial number of decent growth charts exhibiting resilient or upward action at the moment (something I'm not accustomed to seeing when/if the market is about to tank); Significant shorts (both retail and institutional), combined with extreme negative sentiment which preceded the rally (combine those two elements with an actual rally and you have the positive); Momentum is now upward; And an utterly insane Federal Reserve that will mortgage your children's grand children to get this market stable.

The bears may think I am crazy and they are recovering much of their recent blood-let losses today and yesterday; but if the market is so ugly right now I should be getting killed being nearly 100% long (so far that's not the case). I'm a little nervous and more recent sentiment numbers are bearish, not bullish, but longer term - okay let's not talk about longer term.

I like my portfolio right now. Good trading

Total Position: currently 5.35-to-1 net long, (76% invested)

Currently Long (according to size):RJI, ARST, PMCS, GS, STAR (new today), WNR, MYGN, SNDA, MNRO, UGP, IOC

Currently Short (according to size): ELOS, AXA

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