Market In Teasing Mood

Posted by admin

August 15, 2008

I honestly don’t know which way the market is going to move tomorrow. It looks like every single move is relative to oils and commodities. As the oil moves higher, stocks heads south and vice-versa. This market has been dancing on the tunes of commodities and would be better if commodities start moving lower as it will definitely lift some pressure off the consumers and retails. I want to see the market moving higher irrespective of the moves in oils and commodities. That move would definitely be a much needed confidence booster for the bulls.

One important point to note is that while the major indicies have climbed higher, all this move is on contracting volume.

So keep things in perspective before you jump on the long-side. I would start probing on the short-side as this rally turns out to be bear market rally.

One of the short I’m looking at is (AAPL). I know, this might surprise a lot of people out there but my observation and gut feeling says that this will rollover sooner or later. Even though we are in a confirmed follow-through rally, its definitely a good idea to have a positions on both long and short sides. Commodities are setting up nicely for another leg down.

Trade Updates: My open positions in (CEPH) and (CELG) exploded higher today and I closed my (CEPH) calls for a handsome profit. I’m still holding on to my (MPWR) calls and would give it couple of more days to wiggle and get its act together. I will be updating my portfolio page this weekend to reflect my current holdings and stock ideas page with more setups.