Here we can see Ronnie Lott running one back. This is what the market appears to be doing today, going the other way.I was a little confused why the open was so positive. Job contraction, dubious origin though it may be, is not a reason to celebrate.
I don't think it is anyway?
Today is a great example how most do-it-yourselfers should not get caught up in one day's trade. People who chased heat this morning probably got whipsawed. If you actively trade your account, getting whipsawed every once in a while probably goes with the territory but someone that is more of an investor does not need to subject themselves to this.
10 comments:
50 point swing on NAZ, all on news that Pat Riley is taking a leave from coaching.
I actively added to my MZZ position which I have been buying in modest 100 share increments on strength.
double short midcap?
probably not much different than SPX-but i have not looked- but how'd you decide to short midcap of all things? You are not alone as the volume is 200,000 shares but just curious. TY.
I applied a very complex black box algorithm that computes what I call my proprietary index discontinuous divergence logarhithmic evaluation (PIDDLE). This computes a mean average divergence among all of the major indices (I cannot divulge the time period as all of the research departments at the major brokerages are beating down my door to get this). But wait, there is more....The PIDDLE must be further refined by other calculated values that through my proprietary statistical analysis, I have found to be, well, valid. (1) the earth's orbit tilt (I use a 6 month moving average, and I measure it noon daily), (2)changes in the sun's gravitational pull (I use a 5 day moving average, and I measure at 6. a.m. each day), (3) metering of sunspot activity (bursts per hour as measured continuously over 10 day period.) Each of these readings are multiplied by each other, and the nearest square root is calculated. That is then multiplied by PI. Which ever short ETF sports a current price closest to this number is the one that I choose. Voila...MZZ.
P. S.
Seriously, I thought the MZZ would be better weighted to stocks likely to tilt lower as the stalwarts would be pulled out. I don't see this as a long term position. One of my resolutions this year was to refrain from options.
This was just another case of the Fed raining on our parade.
http://www.marketwatch.com/news/story/us-stocks-close-mixed-after/story.aspx?guid=%7B655931CE%2D2C1A%2D4896%2D86B1%2DD50A50184ACA%7D
OT: Gold has sold off on the past full moon cycles. Saw a chart today. Very uncanny and consistent.
Has anyone noticed coverage to animal fats as the major new source for biodisel fuel? In five years, projection is 50%. Tyson will be major supplier.
And, heard on NPR public projects are increasinly requiring new bldgs be certfied green. In only 3 years, I think I heard, energy saved covers higher costs. Are there enough dots, yet, to connect that spell a temporary tight energy market? Where is the tipping point, if ever? Will alternative tech sources offer investment opportunities, or is this a false theme and better to just see higher productivity which argues for better general market returns?
If the S&P is weak, the midcaps will probably be really weak. Long only guys will be buying the S&P bluechips if they have to buy something.
What's really needed is a double short EEM. When that badboy goes down, it goes down.
A double short XLE would also be nice for days like today.
the double short EEM and XLE, I agree.
there are double short sector ETFs in the works, that I know. Not sure about any product that goes short foreign.
I believe GS did an announcement that was negative on commodities before lunch - note the highs were around 10-10:30. That impacted several sectors. Then the Fed minutes scared some sellers.
Note the sector rotation apparent today ... commodities just got another nail in their coffin. One of your readers will get a bargain if he wants to put a 100% allocation on SLV after today! LOL!
This morning was pent-up demand based on 4 days without trading and almost all the foreign bourses going like gangbusters the day before. The morning had nothing to do with news, the afternoon had everything to do with it.
Good day for my stocks today ... regardless of what happened to the indices. I like to start the year gaining a point on the benchmark ...
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