Subtle Shift

The market is called “bull” and “bear”, it sounds very masculine, but in reality, the market is much more subtle than its name suggested, it transmits its intention in some hidden message. Just like a dating game, it takes sophistication to read your partner’s mind.

 

The oil and major market has been tightly coupled recently, so, the market automatically went up when the crude went down in the morning.  However, the worries of the market shifted, it concerns more of the economy (inflation and earning) than price of oil, so, the market went down once again with the financials in the end.

 

The oil/resource/steel and any thing economic sensitive (for example MA, V) probably will do worse in the near future unless we have very good earning surprise to prove the market is wrong, which seems unlikely.

 

Today’s trading of general market reminds me of the trading characteristics of YGE not long ago, everyday, it offered tantalizing hint of going up, sucking in many unsuspected, and then, in one swift stroke, it went down to the toilet, and bring millions’ dollar down the drain.   I thought to myself at the time, the only time I would buy is when YGE opened sharply lower, and one day, it did, and it ended up high for that day.   I probably will say the same thing to the general market, if tomorrow, the market opens sharply lower, that will be the time to cover the short and begin the buying.  Let’s see if it pans out that way J  otherwise, treat any rally as a selling/shorting opportunity.

 

Good luck to all.