27 JUL 2009, Monday

1. Dow above 9,000 this past week. Gee...guess it's time to celebrate. Not so fast Jethro.
2. As discussed in the 9 JUL blog entry, it appeared that there were becoming a few too many "retail" bears way too fast on the price drop in early July. Thought we could see a decent bounce but, I admit, I didn't think it'd move anything like this...SP500 up 12.3% in 10 days??? Holy raped ape, Batman. One thing that the markets have demonstrated these past few years is to "expect the unexpected!"
3. I was waiting for this recent rise as a potential opportunity to enter some short sales. I waited patiently for it to come up...waited...waited...then pounced! But it just kept scorching upward so I was forced to buy back the position, take the loss and lick my wounds. Now, I'm waiting for my next opportunity. Many trading blogs I read are all saying the same thing...technical analysis isn't working right now. Well, neither is entering trades based on economic fundamentals. It's something to behold. Is there more? Or is it on an exhaustion run? Dunno...I'm watching price levels (Support and Resistance) for clues. Straight runs (either direction) like this are always tough. Could be more upside after some correction or consolidation but, to me, this is getting stretched because I don't see the economic fundamentals have changed sufficiently to support it.
4. Sure feels like a pump to the next level to get everyone feeling..."It's getting away from me!" People will do the darndest things when emotional and "Da Boyz" know it. Think of it like this: retail guy is the fish, "Da Boyz" are the fisherman. "Da Boyz" go down to the lake, toss in the lure, see the fish going for it and tug it back a little. The fish sees the "meal" pulling away and charges it only to have the fisherman pull it away again. This goes on for a bit until the fish is determined to "get it this time". Oh, and he gets it...hook, line and sinker...much to the fisherman's delight.
5. It's going up again as proven by this recent breakout to new highs for the move. Be careful out there. Geez, I worry too much...but staying alert has always aided me.
6. SP500 Resistance: 1010, 1050, 1100, 1130...(to infinity and beyond?)
7. SP500 Support: 940, 910, 870, 830...(to the Abyss?)