Tuesday, November 13, 2007


Sell the rally. It won't have legs to go all the way. I don't see a bottom here. I think we test August lows at the very least.

ETFC has done well for me this morning. Analyst from BMO came out with a note stating bankruptcy was 'highly unlikely'.

Financials are doing well today with big gains in GS C MER BSC ( Which is below its August lows) LEH . A bounce in financials was expected anytime and its happening here.

Better than expected earnings from Walmart and a declining Yen were two catalysts for todays bullish start. Lets see if the Dow holds 13000. One could make the case for going long here with a stop at yesterdays lows. Either way I prefer to see a huge plunge and recovery before going long. The Dow will face resistance at its 200 day moving average at 13223. If going short a stop at 13250 may be wise. The S&P and nasdaq can also be shorted with stops at the 50 or 200 day MA. I'm sitting tight here with close to 40% in cash. I'm leaning more towards shorting.

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