Could A Meaningful Bottom Be Coming Soon?

For those of your that have been reading my blog for a while, you’re perfectly positioned and can sleep at night because you are actually going up on a day like today.  I really hope you have taken the advice from this blog seriously.  I watch over millions and millions of dollars so one of my eyes is always on my screens watching for what’s moving and where the risks are. 

The last few days have been interesting because we’re not rallying where we should be.  I had mentioned yesterday we were mildly oversold and I expected a mediocre rally.  This is actually a better scenario.  If we can’t even rally where we are supposed to, then we might be headed for a spike in fear and outright distribution of stocks.  We’re getting very close to the lows of 1256 which was the intraday low in early March.  Here’s what we want.  We want to break through those lows and see all the technicians say “uh oh, now what?”  That will cause a big spike in volume and fear.  That will be the place to uncover the shorts for a nice multi month trade. 

For now, it’s getting too late to short if you haven’t already.  Gold still looks good and I’d still buy GLD.  Also, note that DUG is up today on a day where oil is up almost $4.

So, enjoy these days and look at them as opportunities (if you’re positioned properly).  Also, remember being short enables you to hold your good stocks that are getting beaten up.  It’s about the portfolio, not the individual positions.

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