A special note on Hahn's site this morning, to keep this "rally" in perspective:
*Special Note on Thursday Morning: The irrational exuberance showing in very strong futures this
morning is going to produce a rally. This rally will force massive short covering, especially in Nasdaq
stocks. That's the purpose of the futures “push”. Whether this is a real rally or not is unclear. The stop
levels on short positions should be used to exit, if touched. A big rally, without followthrough, does not
negate the crash potential. It simply runs the bears out of the market. As mentioned elsewhere on these
pages, taking the shorts out of the market removes a source of bids (short covering) during declines. The
markets are in position to crash. It's not a total surprise to see an effort to push the markets up and away
from the edge of the abyss. There are many Wall Street jobs at risk. In the long run, it would be better for
the country if the markets did not collapse. Let's hope the worst of the market declines are over.
Unfortunately, a manufactured rally without real buying interest may make things worse eventually.
Chasing long entries this morning may not be profitable. However, energy stocks (APA, APC, RDC,
DVN) and gold stocks (NEM, PDG) are buy candidates. |
