The market is in that zone right now, really. I’m looking at a ton of charts here and depending on your leaning, can be viewed in different ways. If you are a bull, a chart can look one way and a bear would look at it the other way. I like to play Switzerland. A bull may look at a chart that is ready to make a break out, but a bear could look at that same chart as a potential double or triple top. Sentiment takes huge part in how I look at things. This is the type of market where failed breakouts abound so you have to careful. It is also becoming a temperamental and choppy market in here. I put out BLK as a short near the opening at around 122 and it immediately traded down 5 points, the stock went back to flat and closed down about 3. Kooky behavior to say the least. I am holding as I think the financials have a little ground to give back. The chart of XBD, the broker dealer index looks as if it could head lower. I’d rather pay lower than $180 for GS if I can. Too expensive based on this economy right now. Scary when you think the only “go to” bank the Fed had for the Bear Stearns bailout was JP Morgan. Is that a testament to how bad our banking system really is? Makes you feel like it’s a house of cards.
So much for the China market rocking because of the olympics. What a friggin mess that is turning out to be. If anything, it’s drawing attention to what a miserable existence it is over there. I think FXI is starting a rollover here.
Of course the market will be up 500 points tomorrow but this is just what I think about in the shower.
Still short MOO,BLK,AA