« Microsoft (MSFT) Extends Well Above Its 50-DMA | Main | You Name it, They Don't Want It »

Comments

jcars64

I am emotionally bearish and have been raising cash midst losses in Gld, Slv and energy over the past week plus. I still hold two stocks from Foreign markets and precious metal ETF and long term options. Copper and Gold and the DJ Transports separating from the DJ Index all point to a lower market. However, because of the TARP funds and other less obvious Bailout Money, the large institutions are swimming in "our" taxpayer money. They are flush with cash and can better manipulate the markets through hidden coordinated or copycat program buying and selling, and more so using Options and perhaps Futures where daily volume doesn't show up. Watch for some more rapid selling and some big down drafts to shake you and me out. Then look for institutional buyers to buy their own stocks at less than we sold for, ie, GS, MS, JPM, C, BAC, et al. Additionally, they will buy back into energy services, drillers, and precious metals at new lows, or into some other sectors where the instututional buying can drive prices up in several days. That's how they do it. They usually buy back in big in September, but they like to mix it up also to keep everyone else guessing. Watch copper, watch the DJ Transports that tell a quick tale of business conditions, watch China and Brazil ETF's and news. Watch GS. Also look at interest rates in different countries. The Yen carry trade has dried up and it's replacement is formed or being formed from currencies from the lowest interest countries. So the Big Boys have cash and that can and will surprise us down trodden little guys trying to invest or trade in this market. Buying some shares of GS and following what it does for buying and selling signals may be one of the safest ways to "play" this market. Plot 20, 50 and 200 day simple moving averages on GS and watch it. Since the "Faber model says use the S&P 500 10 month SMA as a bogey to buy and sell from", then let's see if GS tells us anything. China is buying commodities and stock piling them in lieu of so many of our Treasuries. So we have to watch news of Treasury Auctions closely and a market windsock as well. But the Big Boys have lots of cash (again out taxpayer dollars) and they won't let it sit still for long.

The comments to this entry are closed.

Bespoke

Our View

Bespoke Premium

In The News

Premium Site

  • Morning Lineup
  • Short Interest
  • Upgrades/Downgrades
  • Sector Snapshot
  • Daily ETF Trends
  • Weekly Review
  • Economic Indicators
  • Trade of the Day
  • Bespoke Stock Scores
  • Daily Market Model
  • Daily Strategy
  • Daily Stock Odds
  • Market Studies