Looks like we'll have a quiet week with low volume, and lot of traders finally got some time off due to the volatility early this month. But I like the market tone, down it went.
- All major indices were down, nothing big.
- Considering how far the market rallied since August 16th, it's good to have a down day.
- Bears hope it to continue; bulls like to take a break too.
- I expect we'll pick up things next week, specially the week after that, with most people returning from vacation.
- And I expect a test of August 16th's low in September.
- But market can also break out to the upside. So I'd better not to add new shorts until things are clear.
- Right now, I'll add puts and shorts only on big rally.
- And keep most in cash.
- FXI is breaking out yet another all time high. But the puts are too expensive, so I'll pass. May buy put when I think it will make a turn with the U.S. market. Maybe today is the day, but you never know. Hard to pick a top for FXI. It's a short target for me.
1 comments:
I also think that market will test new low (like Naz 2400). Good news on CROX, AMZN upgrade, and other good news only excited investors in a few hours then they went down too. This is the sign that bears are stronger. Financial stocks are also doing poorly. Now news on subprime impact to money market, raising credit card default will make market even harder to go up. In general, market seems to be bearish in the short term.
ryan
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