Following up on the previous post, I guess that yesterday decline was hardly scary. Wow, some comeback that was, started in the morning and didn’t let go. The few shorts I tried after the Apple chaos, didn’t work and I had to abandon risk management to survive. Not happy about that, but I will take what I get. Maybe these are expiration games, but the way the financials shrugged off the Moody’s headline is telling. Notice also that the daily swings are getting bigger again, like in the Fall. Not much to do, but to take it one day at a time. There will be some sort of Greek band-aid resolution and it looks like it will be received favorable and the headlines will say something about the market cheering this resolution. The trend is still the friend, it is just becoming harder to lean on that friendship!
My plan is to do more of the same, play small, play two-sided and try to limit losses with tight stops. If you’re looking for shorts, there are the bigger banks, (I do tend to believe Moody’s even if the market didn’t today) and some retail. Troll for those with lacklustre earnings and extended stock prices. If you’re looking for longs, I think tech and energy, see who might play catch-up. At least these are the places where my money went late today. The indexes may be toppy, it doesn’t mean they have to fall, they can stay sideways while money rotates.