Mikey's Corner Part Duo

Trading the stock market is a test of your will against the manipulation of the insiders. For example we all know that the economy is in a recession and the end is no where in sight. The insiders however, can produce bogus reports that say we are not in a recession and that the end may be near.

     During this process those reports are used as justification to move prices higher for stocks that you know are in trouble. The power of the insiders then is to deny reality by moving prices higher and therefore frustrating any reality based trader.

     You will notice that when the insiders are unable to deny this reality anymore there will be a period where prices and reality line up and make sense. At this point the FED comes to the rescue and just as you think your world makes sense after all the prices magically reverse and you have another 12 weeks to think about what you believe.

 

This is the process...as traders we sometimes have to do things that we don't believe because we know that they are offing the reality again. I believe we are in that period now. Its no mans land.

The best way to deal with it is to wait until something that you want to short has rallied for 12 weeks and is nearing or above its 50 week moving average. If they are touting it at that time it means they want to get out and sell it to the public.

 

The good news is that in the end price and news line up and what you thought was going to happen ...happens.

 

That is the game in a nutshell

Where we are now ...

 

The financials, airline, retailers bottomed on JULY 15 th I think they can rally for at least 12 weeks from that low to the middle of OCT.

The end of the cycle oils, commodities, are bottoming now and will try to rally until the end of the year.

 

The market then should be in a consolidation with a slight upward bias until the Financials peak and the commodities rally.  

I think the big hit in the market is not until next year. 

Alrighty then ........Have a good day!!!

Buy signal on SDD 68.90 TWM 68.90

SDD is double short small cap

TWM is double short Russell 2000

MZZ buy signal ystd at 57.24

QID buy signal eas 42.10

 

Also like these long term

Stopped on DIG at 72 -6

Even though I was stopped on the DIG today I expect to come back into it. This hit smells fishy to me like a climax. But I will honor my stop and live to play another day

Still holding LEH with a stop at 13.50

Choo choos having a bad day. Starting to make some progress on those shorts now

Mikey

Love your posts, Any thoughts on WNR, Would you get in to DIG now and DGP..Oldhost

Mikey  how about DDM    dow has to have an up day

Expect pullback on SMN selling 1/2 of my position

Still shorting CSX UNP NSC  ...Position trades

Will not take a shot on the market long until I see what the retest looks like ...Will let you know

Rails .... look like cream puff shorts

WNR in a down trend and I know noithing about it

Keep an eye on the UYG here Looks like it is gaining relative strength

On the DIG I was stopped out ystd at 72 still out

I am really more interested in shorting opportunites because I am long term bearish. I have limited confidence in long side trades and only will take a shot on the long side with a stop from time to time. The outcome of this thing ...even though we might rally to 12000... is certain. What they want you to do is try to figure out what is going to happen in the short term and and that can get you in a bind.  Trading short term is Alice in wonderland stuff. You forget what the hell you believe after a while. At this moment the trader in me says go long because there has to be a rally. The market action has conditioned us to expect the rallies. The last thing I want to be is long and have this thing head for the last roundup.

LEH and FNM showing strength

SDD following its buddies QID and MZZ up now

Best bet in College Football Take Notre Dame and lay the points