Sorry for the lack of recent stock market commentary, loyal readers. I realize that most of you are probably not interested in this, but since I am and its my blog I can do what I want! Ha Ha.
Seriously though, I am VERY impressed with the recent move in the market off the March 6 lows. I can say with 95% certainty that we will not see the March lows again. The VIX is down below the Sept/Oct levels, yield spreads on bonds are tightening, and there is a growing realization that this is not going to be the "Great Depression #2". For those with a short memory, please read my April 6th entry where I mention hitting 900 on the S&P 500...I think we closed today at 903. I love tooting my own horn when I am right!
Long term I am still a big bull on our economy and the market. It wouldn't surprise me to see the S&P 500 near 1000 by the end of the year...maybe even a little higher. That being said, I think there is a strong case for an aggressive trader to make a few bucks here going short. After all, we have had a 35% run and no major pullback(considered 10% or more)...a situation that makes me a little nervous. So...I bought some FAZ today around 5. I have done this recently a few times and have been crushed, so you think I would learn, right? But I think I am right this time. I figure if I can get 6.5 to 7 out of it I will be happy...then I can go back into the market long at a cheaper level than we are right now and ride the wave into the end of the year. You could also do this with TZA, which I did for a few of my more aggressive clients today between 25-26.
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