It’s getting nasty out there and so far the bulls have yet to throw a counter-punch. As it currently stand the markets are down a little over 2% across the board. My new positions of GE, RGLD, and CF are working out nicely as are my exhisting positions in BBT and UNH. I was also able to get some good fills on the early spike up this morning.
What is telling about what we are seeing here is that the bulls had everything going for them in the early going – rallied at the open to strong positive gains, then had a nice report come out on manufacturing, and instead of heading higher, the bears sold the early enthusiasm. So this has to be pretty disheartening for the longs out there because it looked like they had everything going for them in the early going but got man-handled soon thereafter.
Always be on the look out for another rally by the bulls late in the day, or at least an attempt – if they try and fail, that will be another solid signal to be more aggressive with the short positions.
Here’s the mid-day chart of the S&P…