Market Wrap 9/28/2011 | Bulls on Wall Street

Market Wrap 9/28/2011

The end of the month  pump got dismounted. After a strong opening where we shot up in the first 1/2 hour to make our highs we faded the rest of the day pingponging around the lows of yesterday. We tapped tapped tapped 1170 on the spx quite a few times before the waterfall started.  It was terrible action right off the bat in many sectors was downright terrible from the open and was the tell that the market was under pressure.  We shorted coal and energy  right off the bat in the morning. ACI, JRCC, btu, pcx all finished down 8% or more.  Overall nobody seems to want to hold anything ahead of the vote in germany tomorrow.  It will surely be the news of the day. This is typical bearmarket action we have seen it before and will see it again.  When things look the gloomiest 1 thing can setoff a multiday run. The most powerful rallies happen when the market is is under pressure.  Last couple days ive gotten many emails from subs asking why I wasnt loading up my usual kamikaze hoard of stocks and that was the reason.  These rallies tend to gap and then run out of steam sucking everyone in to sell at the bottom , chase it up to the top and then POOOOOOF there goes your account.  Its a real mind F$%cker as it makes you chase and buy things even when you feel uneasy as you dont want to miss the big rally.  Its important to stay out of that mess and be selective with your trades.  You got to operate more as a surgeon these days nip and tucking your way.

 

 

4 thoughts on “Market Wrap 9/28/2011”

  1. Kunal– great article, what if we held shorts overnight, can we still get out in the morning?
    What are your views, will we hit 1140 on the SPX then gap up? thanks

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