Talk about getting destroyed today it is down $45 dollars, or 22% on MASSIVE VOLUME. If financial companies that report this week can continue to post in line earnings showing analyst have been overly pessimistic, mark my words we will see this flush out of shorts to lock in profits and we will see this ETF driven to the floor. Because as I have posted yesterday, longs have been severely overkilled. And sentiment in the markets have gotten so negative that all it takes is something positive to happen and bam, we get a massive short squeeze.
Some of the financial stocks during today's rally were just unbelievable. We are talking 20%-30% moves in ONE DAY. Granted, they have been destroyed this past year. But buying stocks are all about entry points. If caught correctly it can be very profitable. Keep an eye on financial as they seem to have the capability to go higher if theres continual following through on short squeezes.
Ebay posting up some good numbers but the stock is selling off. I think it is just partly because the stock ran up into earnings. Tomorrow I'm looking for a pause day. Meaning either small move up or down or stay flat. What we DON'T want to see is a selloff back down to the lows of the day. Because that'll completely negate the move today. We need to see confirmation.
Oil coming down hard the past few days. We have seen this happen before, but we need confirmation too. But everything that needed to work today worked. Financials caught a mega bid, Oil came down hard, the dollar firmed. Let's see if the momentum will continue.
Hang tough longs, perhaps this time around, the calvary is coming.
- DL
2 comments:
Hey X, whats up man. Today was good for me and a few positions.
Most notably my SQM was the best performer up about 7% and Ag sector seems to be turning the corner slowly for a move up again.
As for the private group, here is the link
http://groups.google.com/group/shippingstocks?hl=en
Contact and request to add. Its all stocks talk and no nosense.
Anything you can add the the group will be appreciated and you can also get solid info from some well informed and smart traders that work in the industries that we trade.
Hello xman
Glad to have you back on track. USO is definitely under correction/consolidation period now imho. Anyway, GOOG is going to report earning AMC tomorrow. Any thoughts on it? It's great to see a side-by-side candlestick formed on last two sessions on a 1 year chart. Looking forward to your posting.
Regards
Joul
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