the Yuppie Pig

Today was certainly an important day for the market and economy in general. Helicopter Ben is truly here! I don't want to debate too much about his "kick the can" policy, but I will say that I do agree with the tactics being used. What will be important later on, is will he be willing to take rates up when things recover? Will the government regulate more prudently? Sure, this is all "pro investor" but as human nature has shown time and time again, people will get greedy and excesses will grow. Now, on to the markets...

I fought the tape and I lost a couple fingers today. I entered the day tilted short and of course, took a bit of a beating, on a major up day. It's days like this, absolute and relative under performance that hurt the most. The market is up from 666 to 800 at one point today. That's a 20% gain! While I side stepped the decline, I missed most of that run. Note to self - Stop fighting the tape! The market remains overbought, but of course, things can always get more overbought. The 60 minute, which has been key this year, finally failed me, as the recent roll-over mounted only to a 1 day pullback.

The SPX is not pushing up against 2 major resistance levels. One created by the downtrend line from this year, and another horizontal level. If things roll over again here, I will again, push short. But we'll see how things play out. There was a bit of a reversal after the Fed this afternoon, so this might have been a short term top.

The next upside target would be 820, but lets take this one day at a time.


IYR actually looks somewhat bullish here with a nice inverse head and shoulders pattern. I'm short this name unfortunately, when I should have covered when the "right shoulder" was completed. Or at least took some profits.


I also have a short ANF and long WMT, of which ANF, the lesser of the two companies rallied harder than WMT in a "what's worse rallies hardest" day.

I have to take a serious look at gold now, on a play regarding to days helicopter money drop. One way is to short the USD, but global currencies are a mess. I actually repatriated all of my profits this year back into Canadian dollars which turned out to be the correct thing to do, as the CAD seems to be one of the more stable currencies now. It's all about relative performance. Gold is now interesting on that same thesis.