Friday Was Nasty Too But...

On Thursday and Friday I started to trim longs and put on some shorts. I am still holding around 45% of account in long positions but I am starting to get lots of short candidate charts. But now all of sudden everyone I talk to thinks we are heading into a recession. Boy oh boy, how opinions change so fast nowadays. I am starting to think the 1966-1982 market could be repeating itself. Cause from what I have learned from old time traders is that this happened a lot during that time. People thought we were going to the moon after an uptrend started, then it would finish. Then in the downtrend, shorts claimed control and shouted from the rooftops that all hell was breaking loose. Oddly, nothing happend the entire time. Just an up and down market like the one we are in now. However I am hoping for the 1994-1995 scenario but whatever happens is cool with me. Up or down or sideways, whatever. There is always a bull market somewhere, as Jim Cramer says. Currently it is oil, medical, and select technology sectors. Still a lot of good looking charts out there.

After the rebalancing of the Russell indexes Friday, my charts were so scewed that I had to look at the intraday volume stats to confirm if moves in these stocks were throughout the day or just EOD (end of day) rebalancing. Then after further thought I have decided not to initiate any new positions....almost. Three or four of these longs are too juicy to pass up, rebalancing or not. For the other short and long candidates, I have decided not to take another look at them, thanks to the Russell's rebalancing.

New longs: VTAL STJ CTRX IDIX TMY --all medical and one oil

Add on to original positions: ASTM STEM TIV TRGL GET DENN

Aloha!