Ex15:26

Friday's Rally: Just a Short-Squeeze?

This is a great discussion, and frankly, I'm excited to actually see some bulls coming out here and arguing their side. It is no wonder that we had a relief rally because everyone, and I mean everyone has been negative --- so much so, I had to turn bullish for a week for MOS earnings and the subsequent run.
While I have been confounded by the performance of the banks, I am thankful for their new position which allows me to actually enter trades. SKF at 105 is a lot more comfortable than SKF at $142.

Grace, I'm not buying the short squeeze notion - Friday's volume was just average, I think everyone didn't want to sell and frankly didn't know what to do.

As far as the goldilocks economy coming back that Steve and High Tech seem to envision, let's remember the destruction of capital and bank assets, the dilution of s/o equity that everyone is so excited about, the rolling over housing, condo, and now commerical real estate markets, and I noticed that you didn't mention the jobless claims (which will be revised downward again!). Did I say anything about soaring food costs, riots overseas, and that black gold (oil), and gas prices? Those probably won't impact the consumer one bit nor usher in that non-reccession that we're not in. Why don't you buy JCP on that strong retail sales number?

To summarize, sell the rally boys and buy those puts. It's not for the faint of heart, but sure better than losing your shirt as we go to 11,600.