I agree and still am treading cautiously, although I nibbled on a couple like FCX and GDX this week. In some accounts I traded a few nice pops yesterday but went to 100% cash after that. Stocks like C, BAC, SID, STLD, CALM, GTLS, CSIQ, MR, TISI, RIO were decent trades and closed out. In some accounts, my shorts prevented me from making outsized gains this week, but amazingly even with the short hedges it turned into a green day.
I have mixed feelings so am still cautious. The Dow was down 30 on the week after a painful mid week debacle and rebound. I'm not all that comfortable with Paulsen, or Government intervention in the free capital markets. It signals to me the end of capitalism and free markets as we once knew them. Government induced sharp rallies have happened for over a year now and the net result has been that we hit new lows just this week. All we can do is play it by ear. The thrust with which we rallied off lows could very well be signaling a tradeable rally like the one we had in March thru May. On any give backs or dips this week, a little more selective buying may be in order.
Like most, still down on the month, up on the week and confused. When a stock like SKF trades at 154 one day and 76 in pre market the next day, or a stock like GNW trades at 3.50 one day and 16 the next, its difficult to have confidence that volatility is dead.
The next thing we know is that long side trades in agricultural and energy stocks will be banned by by he Government. They have already set some very disturbing precedents and I don't favor markets being run by our Government.
|
