A much better day today. Took some small losses on my overnight shorts (except once again, CDWC, which produced a profit) and went with the PPT today, trading only the long side. Had several small trips in CCMP, which significantly underperformed the rest of the sector and some nice trades in KLAC and NVLS. I wiped the slate clean late in the afternoon and into the close to go into the weekend with no positions, but the selling near the close in CCMP induced me to get back in it one more time, hoping it will do better Monday. Reading through Zeev's posts from today, it looked much like we were in sync on the trading of that one.
I started to also add to the golds on the closing weakness, but memories of the past when late selling against the grain in the gold stocks portended a selloff in the metal the following day prevented me from doing it. Gold is very close to making a big move - it could come Monday or it may need more consolidation first, but I am confident it is coming.
I read the Schaeffer article, and pretty much agree, of course, except I don't think we have much rally left before we head down. I continue to think next week should mark the end of the rally although I cannot rule out a bit longer, into the following Tuesday. Right now, there was good PPT support all day so I look for them to hold it up at least through the Bush economic proposals, and probably a bit longer out of politeness before turning down. I certainly agree with Schaeffer's analysis of the economy and markets with regard to the risk/reward being solidly in favor of the bears. I do not share his optimism on the tech stocks and NAZ, though.
Have a great weekend all.
mlsoft
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