Well bears, here's your chance to make me look foolish. On a day when we breached the lows of the year, something I warned would spark a huge amount of selling, I'm calling a bottom. Well a short term bottom at least. I tweeted earlier that I just didn't feel all that bearish here even though we breached some key support levels. If we open up down tomorrow watch the 1090 level cause that's where I think we turnaround, and that's where I'll be buying. I'm not sure who'll lead the way, but I'm guessing it will be tech since Apple (AAPL) is in play tomorrow. Once I see who's leading the way I'll be looking for some longs and for a 6%-8% bounce in the major indices over the next week or so. But I would use this rally to unload any big losers, and take profits on winners, because I see nothing good on the horizon concerning Europe or China which is what's driving the action. Even if the Greek default is "manageable" and China has a soft landing, it will take some work to get there (and by work I mean lower equity prices). When this market starts to become overbought, and the VIX creeps below 30, I intend to be long only a few issues like Apple (AAPL) and Alexion Pharma (ALXN). I think Netflix (NFLX) is oversold and just begging to be bought by Amazon (AMZN) or Apple (AAPL) so I'll hold on to it. I'll be long the dollar index and short the Euro. I'll also be covering my gold and silver shorts on any weakness in the coming week and will look to start to getting long the precious metals in euro terms. That's a bit of a complicated trade but I think you'll see much greater upside in the price of gold and silver in euro terms vs. dollar terms.
This is not a recommendation to buy or sell any securities. DAK was long AAPL, NFLX, and AMZN at time of publication but positions can change at anytime.
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