Rande has some decent insight on occasion, but he is a staunch bull and is very biased by it (no disrespect to him, just how I see it. I am sure my opinions have been disagreed with by some as well, but that's why we have a free exchange of ideas.) In my opinion, I hardly think a rally of the micros is significant. The winners today rallied on small volume. What I would attribute to MM's, trader's, etc., taking advantage of the ability to move low interest stocks for gains and the micros are easy targets. While we may be able to pick some of these ahead of time, I have a feeling it will be primarily random pops based on news or trader flavors of the day. The key to remember is that the big caps and leaders of the market continue to decline and the losers who cannot earn a dime will continue to get beaten to a pulp. The trend is still in place. While I do expect some sort of bounce to carry us for at least a few weeks to the upside, I don't feel the time has come yet, but it should be soon. Long term I still see the Nasdaq below 2000.
Remember though...we are traders...whether a market is going up or down, we listen to the charts and do what it tells us. We trade smart. Even if you have a certain trading method, you should be able to make money in a bull or bear market. I am primarily a short specialist, yet, I can make money in a rising or falling market as long as I pick the right moments to short. To me, market bottoms and market tops are irrelevent as they should be to any trader.
Of the micros that do pop, don't expect them to stay up, because they won't. But don't short on the first rise either or you may get killed on momentum. Play smart. Think about it...from the list do you really think stocks like ETYS or ZANY make good investments?
Velo |
