Tuesday, May 20, 2008

"This time it's different" - NOT

Interesting market action yesterday, just few hours after my "Market Correction" post.
And don't listen to CNBC "talking heads" ( I wonder - why this term is so applicable to Maria Bartiromo - they don't even show lower part anymore, for the amount of money they get paid - at least some respect to viewing public and descent diet is expected, we don't ask too much, we don't expect any smart predictions/explanations, but ... what with the view??? ) and alleged affect (SNDK) had on NASDAQ ( what about a lot of others, non related to technology sectors, hard selloff?)

Yesterday afternoon, most of "hot" sectors, such as Agricultural Chemicals, Oil Services, emerging Markets ( Brazil, Africa and so on) posted WEEKLY SELL signals. This can change during the week, it is still in progress, but this is the first time during last 10 weeks I observe new weekly signals. If these signals will be confirmed at the end of this week, I would expect, least to say, either
1. Volatile Consolidation
2. Hard multi weeks selloff.

(Which I suspect will happen, based on multiple "ugly" Head and Shoulder patterns on a lot of "Hot Sectors" stcoks charts.
Time will tell - keeping long stops tight ( on whatever long positions I have left) and adding more short positions/long puts ( YES - I AM a sucker - I DO BUY options )