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SharePlanner (< 20)

Update On Today's Market Rally

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May 25, 2010 – Comments (5)

While nothing is impossible, if you would have asked me this morning if I thought the bulls would make a mega rally off its lows and rally about 35 points on the S&P to close barely in the green, I would have thought you were delusional. But that is what we got today, and honestly, I couldn't have asked for anything better. This was exactly what needed to happen in the markets today, to get the bulls off their butts and back into the game.

For awhile there I actually was wondering if I was ever going to get that much needed bounce to reload my short positions on, and what we got today should lay the foundation for the bounce to occur. If you read my post from late last night, you will see that I got 51 short setups, and growing by the day, of which I would like to short - I'd do everyone of them if I could, but managing 51 positions simultaneously doesn't sound like a load of fun to me.

So from here I am looking for the market to rally upwards of 4-6%, before I start aggressively adding new short positions to the portfolio (currently I am 100% cash).

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5 Comments – Post Your Own

#1) On May 25, 2010 at 6:18 PM, dpdoor (43.13) wrote:

The market drop on Thursday then less then half rebound on friday is a common pattern, monday and tuesday completed the pattern with a combined drop as big as thusdays. That completed in the am today. The rebound is normal and may see more for a while. May car sells should be good, look for reports early next month. There was a 2 million shares of GE bought at the close, this is a good sign. HOG is not expected to do well, so not all things will do well but cars and stimulas aided will. Close your shorts.

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#2) On May 25, 2010 at 6:21 PM, dpdoor (43.13) wrote:

Remeber the world follows our consumers, we do not follow other countries. The consumers are out buying this month.

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#3) On May 25, 2010 at 6:48 PM, guiron (24.18) wrote:

Gas is cheaper, too. This weekend should bring more people out than if we were at $3.

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#4) On May 25, 2010 at 8:37 PM, SharePlanner (< 20) wrote:

All good points - for what its worth - I am completely in cash right now. Waiting for the market to rally be fore shorting again.

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#5) On May 25, 2010 at 10:51 PM, sentinelbrit (93.13) wrote:

I have a fair amount of cash that if the market continues to fall I can buy; at the same time I have enough invested in the market that if it rallies I will do okay.

We have had a huge amount of bad news recently that has swamped the good news. We are due for a rally. I personally think stocks are reasonable value, not cheap, but reasonable value. Some individual stocks are cheap.   

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