General Stock Ideas

[bigworld]

ombow: Going short except at market extremes is dangerous. That being said there were some significant negative developments this week. First, the commodity ETF's I favor began to seriously underperform the overall market. Then there was a significant increase in insider selling. Under normal conditions I'd probably go short here, but I fear some move by Bernanke that could trigger the final leg up in the market. I got stopped out of a lot of positions but I am not yet prepared to go short. At least not yet. It could be just a shake out because sentiment had started to shift to bullishness. Perhaps another day or two of weakness and we'll resume the relief rally. It's too soon to tell. If you take a position in TVIX be prepared to abandon it if the trade goes against you. As for myself I'll keep my remaining QQQ and stay mostly in cash until I get a sense of the situation. You can't dismiss the Bernanke factor. You never know when he might announce some new stimulus that could be the catalyst for a final blow out rally. Or the ECB could throw $100 Billion at Greece. The situation is precarious either way you trade. That usually means cash is a good place to be.