It’s Always Sunny at Wall & Broad

The rally continues on Wall Street. Portugal, Italy and Ireland are still on the brink, the Mideast continues to be one collective firefight and a slow motion train wreck and later in the week we added abysmal housing starts to the mix. Sure it’s done with anemic volume ,  but for now, who cares? The shorts are covering and the bulls are pressing. The shorts have tried, (with zero success,) to talk their books and drive stocks like NFLX & OPEN lower, only to be met with a margin call.

I watched David Tice of the Prudent Bear on Kudlow last night. He looked like he needed his binky and a baby rattle, as his frustration about being short forever looked obvious to me. He looked like a kid that was put in time out and had his big wheel taken away. He admitted that he was “early” with his thesis, but as we all know, early usually means wrong on Wall Street. He has been early since 666 on the S&P, I don’t know how his subscribers can even afford his newsletter at this point.

There is no joy in being right after being early.  If your account is down 50%, remember that it now takes a 100% return just to get even again. To me it is futile, it also doesn’t involve any skill set whatsoever. I continue to be amazed on a daily basis by some the traders on Stocktwits that bob and weave and continue  in many cases, to play the daily ebb and flow of the market with uncanny dexterity. Long or short. Trust me it’s not easy.

This market demands that you be nimble. In my last Sunday video to subscribers I had about seven shorts listed for the week ahead. One triggered, the rest didn’t, when we saw bids come in, we changed coarse and initiated longs. We had a very decent week from the long side and we will monitor those potential shorts and initiate them when the time is right.  It’s very easy to super impose your thinking about market direction. Let the market be the lead, be happy to just be a the copilot. As I have said before, the market may be the only place in the world where following trends and not setting them is good. Long for now.

To request performance or if you have questions about becoming a member to my Premium Site please email me at [email protected].

Previous Post
The Wrap 3/24/11
Next Post
Video for Week of 3/28/11

Recent Articles