"Water shapes its course according to the nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing. Therefore, just as water retains no constant shape, so in warfare there are no constant conditions."
Sun Tzu

Wednesday, February 2, 2011

Random Morning Market Thoughts

  • My short-term bearish thesis didn't play out so far. I was wrong, so let's move on. Yesterday, I closed short positions in the consumer discretionary sector and small cap stocks. I was probably not the only one. 1300 was an important level for the S&P and a lot of stops were triggered. We'll see if Tuesday was "just" a short covering rally.
  • Credit Suisse finally figured out to "buy the dips". Hey, that's what traders have been doing for the last two years. Actually concerns me a little when big banks jump on board (Pragmatic Capitalism).
  • I was looking at a lot of commodity sector charts this morning. Incredible bull market. However, it gets time to take partial profits on extended names. I'll sell half of my best performer Halliburton.
  • Financials start to look interesting. Stalking JPMorgan and Wells Fargo.