Tuesday, March 10, 2009

Ignore This Rally

The market had its best day in months.  If you are smart, you will ignore it.  I will say it again, this market is not going anywhere.  We may see a bear market rally, but we will stay in this low trading range for months as the market finds a base.  When market moves violently, it is dangerous.  You can not get in and out of positions very safely.  So as much as this rally might bring a smile to your face, it could just as easily punch you in the nose when it reverses in a few days or weeks.

That being said, I did do a little bit of buying.  I bought some material names by buying the ETF XLB. I think material names might be down from here on a pullback, but I think the long term picture for commodities is bullish so I'm starting a little bit of buying here.  Overall, my portfolio had a great day.  I own some Nasdaq, some energy names, and some financials.  Most notably I am double long the financials here and long Morgan Stanley.  Both rallied over 20% today which made for a nice little bounce in these names.

I am hoping for a rather flat to down market tomorrow as there was some buying I wanted to do, but did not want to chase anything into today's rally.

No comments:

Post a Comment