Friday, May 1, 2009

Yesterday's "selloff"

The bears just don't know Jack!

The Nasdaq closes up 1%, and we call yesterday a sell-off!

The bears are changing their lexicon!

Yesterday, however, is not the end of this rally as so many pundits want to say. In some specific names, you saw short sellers capitulate--which gave you good spikes in a number of stocks. That's all yesterday's action was. Traders that sold into some of these short squeeze spikes, probably also decided to sell a lot more of their inventory down. It's nothing more than that.

Every day, we have an issue that those who are short, and with an agenda, pretend are giant issues. And everyday, we have some pundits, that caught a bit of these rally, trying to be a hero, to now try and call it's top. Toxic assts, stress tests, swine flu, and now Obama threatening Wall Street were all BBE's (big bad events).

None of it was true.

Wall Street needs to get over themselves. They no longer call the shots in the world. They no longer have the power with naked shorting and credit default swaps to panic the world. They don't even have enough confidence to trade this market, and to trade out of their losing positions!

Look at Denninger's latest missive:

No, There Is Not a New Bull Market
C'mon guys. The callers are all out this morning. Jesus, can we have a bit of reality?

I gave him some Jesus reality on Easter!

Look at Henry Blodget's latest missive:

But doesn't the 30% rally off the bottom obviously mean that the bears are fools, that it's finally safe to get back in the water? No. It doesn't obviously mean anything.

That's advice?

The bear market was over at 667!

And now, we are on the second leg up. So those that think we are set to pullback are just living in fantasy land.

You had the bottom here at 666.

And, then eight days ago, you had the start of the next leg up.

How is it over, when it just started?

All these bears that want us to worry about "Giants" should instead be worrying about the beanstalk that grows to the sky!

The bears don't know Jack!


Anonymous said...

I have started following your blog recently and your views are different than most of the guys on your blog list. I happen to agree with them that there will be a pullback in the near term before a move higher. But it is good to learn about the opposite view point. Do you think that the rally we have seen so far keeps going till the Dow sees 4 digits?? Thanks for the all the posts.

Palmoni said...

I don't think we get a pullback until 955-960 on the S&P--then we get the 4% pullback and we run to 1000!

Anonymous said...

Thanks for the response. I do like you calling both the uberbears and the lying banksters on the blog. I do think based on all the bankruptcies and job losses that are going on that we pull back to at least S&P 700 at some point. Maybe after touching 1000 as you mention but I would be very surprised if it went that far. Can you recommend a few stocks for the leg up you expect.

palmoni said...

Two ETF's that should give a big bang for the buck. The Dow Ultra 30 gives you 2X the Dow return DDM 27, and the material ETF UYM 17, gives you 2X that index.

I will throw more names out on the blog, as this rally is really going to start broadening out now.

More pain for the bears, more easy money for the bulls!

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