General Stock Ideas

[bigworld]

gfp I wrote a long response to your post and "lost" it with an errant keystroke and I don't have time to repeat it. I was short until 1101. Then I went long in anticipation of a relief rally. As we retested the 1101 area and had a headfake breakout to the downside I have been incrementally adding to positions in QQQ, SLX, XME and have sold TLT. I still think we rally to the end of the year. I will go short again when complacency returns (VIX under 20). TEcnicals don't work well in a secular bear market. Fundamantals are out the window. It's all fear, greed and liquidity. If I was a pure technician the move under 1101 would have triggered a 'go short' signal thinkinbg that a downsidebreakout was occuring. It was only a headfake to coax the last remaining fence sitters to sell and/or go short. Once that last wave of selling ran out of momentum the resulting buying frenzy was predictable. Forget the charts. Forget balance sheets. Analyze what the average 4o1K investor is doing and do the opposite. Peel away from the herd just before the slaughter. Act early and in increments to play the volatility.