Bouncy, bouncy markets!
We had a heck of a time yesterday – going bullish on 2 DIA plays in the morning for very nice gains (35% and 14%) and then flipping bearish in the afternoon for another 20% gain on the day. You have to be quick on your feet and NOT GREEDY to make money in this crazy market. We set up some long-term bullish plays but very well hedged because we still don’t trust the market but all cash is no fun at all so we are beginning to pick up a couple of key stocks that we REALLY want to accumulate over the long haul.
As you can see from the Fallond Stock Chart on the right, we are still challenging our key 5% Rule bounce level that we predicted BEFORE the crash and we’re not at all impressed by the S&P holding 1,155 yesterday but at least it kept us from being bearish into the close. In my morning Alert to Members yesterday at 9:48 I said: “Still all about that 1,155 line on the S&P. It kept us out of trouble yesterday, epecially giving them to the bounce zone at 1,166, which is right where they topped out.“
My morning post was aptly titled “It’s Deja Vu All Over Again” as that’s EXACTLY what happened yesterday and we even doubled down on the spike over 1,166 because we were fairly confident the move was nonsense and also confident that 1,170 would not break for the day. TODAY, on the other hand, we should get a proper test. We’ve gone 2 full days without the World ending and that should be enough to get the bulls back on TV telling us how great things are again and that will bring all the itchy investors back off the sidelines as their money is buring a hole in their pocket AND EVERYTHING LOOKS SO CHEAP!
But is it cheap? Certainly not compared to Thursday. In fact, I think 5% higher than Thursday’s sale prices is outrageous – especially considering it was only a 15-minute sale and, when we all rushed into the store, the shelves were pretty bare so we hardly got a chance to buy anything (although we did get a few good deals on Friday). Now that they’ve suckered the people into the store, the salespeople will surround them and try to not let them leave without buying SOMETHING. There will never be another opportunity like…
