Wednesday, November 9, 2011

Trading Notes for Thursday, 11/10

Definitely pays to be nimble!  Huge days down like today provided some nice swings in both directions.

High probability for more downside tomorrow.  The Bullish/Bearish hedge fund model is now updated, daily signals on most stocks/sectors now pointing down.  The size of today's pullback was a little surprising, but that is the trading environment we are in.  The Euro news shocks can cause big drops overnight, giving a gap and go scenario. 

Chances are that quantitative easing will continue causing the markets to rise and that this is just a pullback.  Nonetheless, many longs were trapped and late coming shorts could keep the market down tomorrow.  Momentum is down and there's no reason to fight it.  The Euro zone is a mess, but like today, it is mainly old news causing the shocks.  Italian bond spreads have been on a rise for quite a while. 

Tomorrow, looking short financials and short Aussie and Euro currencies.

No comments:

Post a Comment