Carl Spackler

Market Headed to Retest Lows?

Where are all the perma-bulls calling for a bottom now! I love these periods when market participants actually put their rally caps away and think about the fact that stocks could actually fall. As someone who has played the short side for over a year, and who put in his shorts two weeks ago, I have started covering my shorts yesterday. I took half my position out at close yesterday and I will watch the other half closely. I feel that the market will retest lows, but on a short term basis, the market is getting oversold. I have my own self-made indicator and it is flashing that there will be a counter trend rally in the next few days. I think this coming little rally will take a few days, and may encompass roughly 25 to 50 S&P points and then we can reload up on the short side. If the market continues downward, I will gladly profit from my remaining 50% position, but do not be like the perma-bulls - take profits on the way down and be ready to cover and reload your cash.

History Suggests the Financial Bottom May Be Near

Reminds me of the character in Animal House who is yelling during the parade "everything is fine - everyone remain calm" while the riot ensues.