Tuesday, October 6, 2009
X marks the spot!
On Friday, March 13, after a week of the bull market run, we had Maria Bartiroma breathlessly asking about the buyers "conviction."
Remember that? Are you seeing any "conviction" by the buyers; do we see any "conviction" by the traders or do we see any "conviction" in the order flow.
No-one even talks about conviction anymore!
Notice how those words have disappeared? Where then is the conviction? The bears trot out all these pimps when the markets come down, but they disappear when we start going higher again. Why?
Maybe they are the ones trying to make the markets go down! And their only conviction is the falling prices they try and create!
And that's why we get these sharp rallies when we have these average 5.6% corrections. The corrections are as phony as the bears conviction!
Take a look at US Steel (X 42.63). This was a stock the bears tried to control. It was over 50 just over two week ago, and then it was knocked down eight days in a row, before rallying yesterday.
Does anybody not think this is going over 50 again, and in a hurry?
How about the September option expiration? Two weeks before expiration, this name was under 42, and then they ran it to over 49 at expiration.
They did the same thing again, and now you can print money again at the bears expense. The stock should run right up into expiration, because everyone has the same playbook.
Stocks pulled back to S&P 1020 as I advertised. Add in a 100 and you are at 1120. We are a quarter way there, and now, instead of anyone saying we are on the next leg up, all we now hear is that deep thinking, hard choices, and these other pimps telling us that we should stay away until the market confirms the rally.
Confirms the rally?
It was confirmed at 667. Why do you need another? It was confirmed at 780, 830, 880, 930, 979, and now 1020. What else do you need?
If you need deep thinking to figure out this bull market, you are over thinking it!
So show some steely conviction and buy X!
Because that's where the next action will be when the rest of the "stimulus" kicks in!
Posted by Palmoni at 7:10 AM