Up and up the markets go, where they stop – only Ben knows!
We actually initiated the October 8 picks on Thurs, Sept 30th, when we had that crazy Dow spike to 10,950. As it was the last day of the month we got an instant winner on the NFLX play and some other good ones as we plunged to 10,700 that Monday. In between, when I wrote the post on Sunday, Oct 3rd, I said “I hate to go short.”
We were still very bullish in our virtual portfolios (see September’s Dozen, Turning $10K to $50K, Defending with Dividends, 9 Fabulous Dow Plays and the June 26th Buy List) since the June bottom (and we were early on that call too) but we felt is was time to start covering with some bearish plays as we completed our projected 12.5% run back 11,000. These 8 trade ideas were to get the ball rolling in October. Since then we have flown up to 11,062 on the Dow, slightly over our projected top, much the way 9,650 was slightly below our projected bottom in July.
Like July, we can take advantage of the the spike to scale into positions and to roll and adjust the trades and, like July, we looked at some bullish covers along the way – just in case we are even earlier than we thought. I’m not going to get into the whole macro thing here – I did that all week but everything old is new again, as you can see from this chart:
I don’t know how well you can see this but I copied the current rally and lined up the bottom with the Feb rally. It’s hard to see because the movement is VIRTUALLY IDENTICAL. That’s right, Lloyd is either too lazy or too cheap to even bother to change the Bots he uses to gooses the markets. As you can see in the area with the extra lines – day after day, tick after tick, there is virtually no variation to the market’s moves up. Last year, we joked about the Omega 3 pattern that we watched repeat itself for months. We’ll call this one the Beta 5 but this may be bad news for the bears as, like the groundhog’s warning, we may have 6 more weeks of this nonsense before we get a proper pullback.
So bears BEWARE! We do not short stocks just…
