Last night I went over the stocks that I was going to consider playing this week. The morning open brought a nasty drop which complicates buying positions. Looking things over I pulled the trigger on CSU at $8.90. Both NI and WM still are on watch, but the weak day overall kept me from getting aggressive. Turnaround Tuesday may happen tomorrow and so I can rethink an entry at that time. Other names I am interested in for tomorrow:
I still hold GFIG.
747 Taking Off, or There Goes Another Load?
Today reminded me of a passage from the short story "Rage" by Stephen King:
'High school toilets are all the same; they sound like 747's taking off. I've always hated pushing that handle. It makes you sure that the sound is clearly audible in the adjacent classroom and that everybody is thinking: Well, there goes another load.'You are probably asking if this is all going to make sense. It might.
At this point the markets are all over the place. Big rallies give way to sustained selling. Selling gets mauled by fast rocket ship rallies. This is a sign of a real tussle between the bullish and not so bullish (I may cut bears from my vocabulary). One of my least favorite aspects of things economic is the glacial pace of movement and the Kid Dynamite maple syrup dripping slowness of market resolution.
As such, I am sticking to my plan of trading individual names and maybe sectors while the general market goes all Royal Rumble on itself. If earnings come in good and some kind of can kicking can be done for Euro debt and the US debt ceiling, today may have marked a bottom where the 747's are cleared for takeoff. Markets can finally trend higher.
The financials are looking dead and should forward guidance sound the wrong note, well, there could be a big WHOOOOOSH and that will be the market getting flushed for the rest of the summer.
How is that for a stance? Maybe this, maybe that. I want to put my foot down here, but it's really in flux. I wish I could feel strong one way or the other.
For a great big picture technical view, I would strongly encourage anyone interested in the markets to check out iBankCoin's chessNwine with the market recap video from today:
Stock Market Recap 7/18/2011
It's the best 5 minutes you can use this evening to get a handle on where things are.
I have long held that for QE 3 to be rolled out a significant market drop would have to occur. Recent action does not even come close. How about a scare to get the debt ceiling done? Two for one? Be mindful out there.
Have a good night.