General Stock Ideas

[bigworld]

ombow: The last driver of an upward market began last week. This rally started with buying by insiders and other 'smart money'. The next boost came when the shorts were forced to cover. Then came the momentum and technical traders. Then in the last week we are starting to see positive fund flows into equity mutual funds which means Joe Six Pack can't resist the siren call of the market. The higher the market rises the greater number of amateur investors will be induced to buy at the wrong time. With the Dollar poised to retreat very soon we'll see a pretty strong equity rally to take the S&P probably up and over 1400. How far and how long it lasts are probably up to Bernake. QEI led to a 6 month rally. QEII led to a 2 month rally. We'll see if there is a QEIII and how generous it will be. The more free Benji Bucks the longer and higher this rally could continue. I hope the rally continues a while, that will make the inevitable downside move more dramatic and potentially lucrative. TVIX might make some sense (in moderation) at the right time. Now is surely not the right time.