Yeah, I know we were oversold and nothing goes strait down, but when we rally off the bailout of the largest bank on the planet it truly makes me wonder. When we rally even though our President Elect gives no hint of extending existing tax policy, it makes we wonder. If Obama wants to achieve true rock star status all he would have to do is say “I’m not raising taxes and I will freeze spending.” The market it would pop 2000 points in a day and folks would have true hope for change. Bush was good on the tax part but acted like a drunken sailor in Bangkok on the latter. You have to have both or it’s just an exercise in futility. One can hope.
I put a couple of charts up that I find interesting. First off, is our old favorite SKF. The stock ripped through $300 on Friday but traded all the way down as low as $161 today. Yes you read that correctly. The interesting part is that it closed right on its 50 day ema which I find very cool. Just one of the million reasons I dig charts.
The other chart is of the DOW. It has only had four consecutive positive days in a row going back to the middle of September. That is truly pathetic action. Will it go for three and a row tomorrow? My money says no. I left early for the hardware store to sharpen my cutlery and I view this nonsense rally as a gift from the shorting Gods.
I ended green on the day as I had a monster trade on an SKF long but proceeded to get stopped on it three times after that. I was guilty of fighting the tape a bit today which was dumb.