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Wednesday, May 27, 2009

No use trying to short this strong market

The markets want to rally, no matter what. All indications are that we can see the S&P 500 reach 940 and as much as 965.
That is where resistance is. I have heard numbers of 1000 and beyond but lets first see it cross 950-960 zone.
Momentum is high but volume is low.
So I would say do not try to short this market. If one must then have very small position sizes.
The markets can be very irrational at times. It happened to the downside now its time for the upside too I guess.
I am buying some high momentum tech and some solars. Also I have some Gold ETF's.
One thing I am also doing is keeping track of companies which had bad earnings and fell after that. Most of them are rallying now. I think once the momentum is gone , they will fall fast, just a guess.
Be careful and good luck.

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