Berney; RE:" CPQ - Breakout! "
breakout, or... blowoff ? I sell (distribute) into that kind of demand, man: TechStocks are becoming short-term overbought.
>But, I see that ADV/DEC line and want to vomit...
Been that way all year... ( are there rules that the market is supposed to follow? Please post them here ;-) MDY and RUT.X still lag Berney's BigBoyz: people buy things that make/move the indices which are their indicators; ie., narcissism. Most of them are momentum (herd) traders, we presume - hence the recent interest in old P&F techniques.
You and I outdid the herd this time, Berney - we had position long before there was any momentum, based upon your F/A ValueInstinct for Retail, Drugz, and FinancialStox, and my MagicLines (^_^)
>Two of the legs of the tripod look good, but health care is still mixed. Tough to sit on a two-legged tripod...
Huh? DRG.X is up +7.43 today, or +1.10% (from 650 nominal to 675 this week) and it's a solid white candlestick. People weren't being defensive today - they were buying anything wearing a dress and high heels ;-) Retail also lagged Techs and Financials. Thats why I think that Financials will probably start to diddle around ~1% gains like the Drugz did today; then the Techs will blow off as the pros distribute DELL to the herd.
Regarding your (good) observation, "health care is mixed today" - next time we do this, let's just accumulate DRG.X and XBD.X LEAPS, 1+2+3+4, sell 8 on the bounce, keep two free (profit) LEAPS in the fake money portfolio. It's about $5K per near-the-money LEAP. That way there is no specific risk from any individual stock pick, only sector risk and overall market risk, which are correlated and nearly equal in this economic environment; ie., the S&P ain't going up for long without Drugz and FinancialStox, as you also astutely observed.
>You really seem to be a contrarian to play this market !
You gotta grab the candy away from them when they're scared shitless, and sell it back to them when they just gotta have it. But dig, baby - no matter what anyone tells you - America Is Not Going To Fail : we are the empire, so keep the faith !
Old Yiddish Saying (^_^)
Buy a piece of cloth
For three cents.
Cut it into two pieces
And sell each for two cents.
Do this three times -
Then buy two pieces of cloth.
-Steve |
