Well, the action after the Fed through Thursdays close is certainly not positive for the bears. I think it is reasonable to assume that we are heading toward $94.40 on SPY which coincides with a gap fill from June 15th and a top resistance. $93 to $93.20 could be a right shoulder top should we get there, but I just see this weeks action as bullish enough to push us higher than that.
All in all the jury is still out on the indices.
I still like USO short. Although my thoughts on deflation have been wavering back and forth. At times I think it has further to go, but at other times I think it has ran its course. For instance, last week I bought another computer for $600. I bought that same computer in 2004 for $2200. Things like this make me think its over. But, then I look at car prices which have barely budged since 2004 and I think we have further to go.
I'm lacking sleep today. The market doesn't know what to do. Keep buying low and selling high.
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Do computer prices represent deflation? Isn't Moore's law, what made your computer more powerful? They still have $2200 computers, today.--I wonder in 2004, How much better a $6600 computer would have been, than the $2200 computer you bought in 2004--
ReplyDeleteAnd what about HDTV's--TV's top price used to be $500-$2000, 2004, now the sky is the limit--
Great market moves.
Deleteyeah, the computer price was not good a example. Food prices would have been better. Car prices are just insane. I still can't believe people are willing pay $40k+ for non luxury vehicles. Anyone been to a dealer lately? I wonder what the financing requirements are like now under Obama? I refinanced our second home and had to go through a rectal exam to get it passed.
ReplyDeleteHello Tenyear
ReplyDeleteJust want to let you know I love your trading ideas on UNG.I don't know where you get all the info on UNG but all the readers including myself really appreciates it.I hope to see more actual trading ideas on your site.
Thanks
You have a good common sense approach about stock trades and market evaluations. I appreciate your work. And as always, thanks for the stock alerts.
ReplyDeleteTenYear, Did you buy SRS near EOD Friday when it dropped so hard & suddenly with huge candle? SRS went to 19.72 I think, but I held off buying. With teh huge drop I was wondering if was more drop next week so I held off buying Friday. However, I beleive I remember you posting that any price under $20 would be a buy. What's your read on SRS now? ... still the same. Thanks
ReplyDeleteI think IYR will retest $34.
ReplyDeleteHappy 4, everybody!
ReplyDeleteYou know why cars are $40k?
ReplyDeleteIt's because there's no more room on the freeways--
Sales have to be limited to the number of vacant spots on the freeways.
So, as a result, the market can charge what the market will bear--