Wednesday, September 27, 2006

Today's Trade: GG. The Market. And the "Angry Professor" Clip

I sold 200 shares GG at $23.75 for a $408 gain. I still own 150 shares.

I am still have my long position in FLIR.

We've all heard the media pumping the market highs crap. We as traders know that the market is not as great as they make it sound. The fact that 30 big caps are doing great doesn't mean squat for the market as a whole. In this case, it might even be a bad thing, as it looks like stocks have been rotating into the big "safe" stocks, and moving out of the real market movers (tech and mid caps). The S&P and the Nasdaq, while decent, are not in quite the same shape. More importantly, new highs/lows, advance/decline and volume are not at "bull market levels". I personally am waiting for a fall, and will be ready to go into short mode on a moments notice. The bounces we've seen in tech, semis, energy and metals make these my primary short candidates.

Speaking of media hype, check out this post by Tim Knight. This is one of the best market blog posts I've read in a long time. He pulls up a fascinating Time magazine article from 40 years ago, when the market was about to reach an all time high at 1,000, and points out that the main concerns were "an unpopular war, tax concerns, economy concerns, and all the rest, the Dow is blasting to ungodly highs". It's true that the more things change, the more they stay the same. Also note that the market tanked shortly after the article was published.

Off topic:
This angry professor does what we all want to do when we are dealt a jerk that has no cell phone etiquette, and his lecture doesn't skip a beat.


No comments: