I meant to post this last [Wednesday] night, but got back home too late to do so. Rev Shark gave some good advice yesterday afternoon about pressing the downside:
"The very persistent weakness in this market is really amazing. Buyers have
absolutely no trust in this tape, and even the most minor strength is an
invitation to sell and drive us lower. Breadth has once again slipped to 2-to-1
negative, and all major sectors are in negative territory.Support levels and the like are totally meaningless at this point. We are
in a very ugly downtrend and where it stops no one knows. Forget looking for
technical reasons to figure out where the market might stop.The trend down is to be respected, but keep in mind that it is getting
stretched to such a degree that a sharp bounce is increasingly likely. The
danger of pressing shorts here is growing as the misery of the longs
accelerates.I’m doing absolutely nothing. The stage is certainly set for something
explosive in the next couple of days, with Ben Bernanke on stage and a full
schedule of earnings reports.Although this market looks ugly as sin and is in clear technical trouble,
I would be very worried about being overly aggressive on the short side at this
point.
(emphasis added).
Kudos to DePorre on a good and timely call . . .
Sources:
Hideous Market Still Not a Safe Short
James DePorre
Real Money, 07/18/2006 1:41 PM
http://revshark.rmblogs.thestreet.com/entry.aspx
?q=a5d13f21-de93-40f1-acb4-980200d19b61
great call Rev
I covered last Friday when the Israeli offensive was driving us down.
always nice to see these posted on a +200pt up day. thanks for the heads up!!