Market went down today by over 2%. While this is not the first big pull back for the market since this insane run up, it is starting to feel like we have hit a top in the market and we now are going to test some technical levels below.
I have slowly gotten out of some of my short positions but stayed in them for the most part waiting for this turn. I got a little bit more short today, but overall I still lost a lot of money as I’m a little heavy weight in some commodity names and in China, two things that did not do well at all. I wanted to get a little bit more short in a few sectors but ran into a small snag when Etrade would not let me short some ETFs. Seems as if it is difficult to borrow some of these, probably because there are still lots of people short this market.
I checked the levels on all my accounts and much to my surprise, I have a lot more cash on the sidelines than I realized. Most of this is due to the fact that I’ve not been doing very much buying in the last few months and I’ve been earning money in my day job in the meantime. I’m looking to buy something if the correction I predict actually happens but to be perfectly honest, I’m really not attracted to anything unless we get a very serious correction, a correction back down to the March lows. I just can not get very bullish about where we are as a country. Yes, we may have averted disaster in the short term. But does anyone really think that all that borrowing our government did is actually going to turn out well? How did that work out for all those people who took out those home equity loans?
Tuesday, August 18, 2009
Is the Reversal Here
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I have slowly gotten out of some of my short positions but stayed in them for the most part waiting for this turn.
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