The market bounced nicely off the lows today and you will see from the chart that it had about 8 consecutive days of lower lows, so a pop was inevitable. I had a couple of early morning miscues, but made up for it with a couple of nice shorts in APOL and a long in one of the oversold banks and some BGU which is the etf 3x for the large caps. Quite a little mover that baby is, and I must say once you have 3x you will never go back. I folded my tent around 1 PM as I was feeling “fluish”. I’m feeling better already but hope I don’t get sick everytime the market goes up, I would hate to miss another day in August.
Was it an oversold condition that rallied us, or was it Ben Bernanke, the Tony Robbins of the financial world that started the brush fire? I would bet on the former because everything Gentle Ben has given us in the past has failed miserably. For that matter everything Geithner and the Administration has brought forward has failed miserably too, on all counts.
Others feel Obama’s speech this evening was the reason. I have my doubts but truly wish him the best. Some feel that because Uncle Sam will only own “40%” of Citigroup was the reason. Hmmm, I will have to give that one some thought. Let’s see, broken revenue model, no dividend, no M&A or IPO”s, no more CDO”S, CDS’S , prop trading or sub prime juice to pad earnings. Not much international business, no mortgages and investors from their Smith Barney division that can’t dig a hole deep enough to bury their money from the market. Other than that, sign me up and get me long, right now and with size.
Sure we go go a bit further here but I’m not at all optimistic, another wet roman candle that will just trap a few more longs.