The Sky is Always Darkest Before Dawn

The stochastics turned down at 50 on the DOW (see the 1yr chart).

Could this indicate that the bears are back in town? But from a contrarian standpoint, there is so much bad news out there that perhaps a near term bottom could arise.


On a sidenote: I'm having trouble converting my charts to the proper HTML format, but hopefully i'll get them up and running soon. If anyone has any suggestions on free charting software, i'm all ears.

Another Volatile Week on Wall Street

All that "great" news from last months post finally abruptly ended with all the indexes giving away to a dismal technical outlook. But most technicians would agree that there are some crooks out there who pump in some billions and save the institutions from there horrible risk management skills. But thats another argument for another day.

The market probably will have some bounce from here on out. Will we have a thanksgiving rally? its very possible, but as far as our longer term outlook goes, I believe the bears have finally stuck it to the bulls.

A few notes, I sold SOHU with a 48 percent profit, oh how I love momentum. CAH has been behaving horrible. I've been shorting AZO from 120 down (although wouldn't be surprised if this gains some momentum as that markets turn back up). It did however, break a fairly important technical area, confirming there will (hopefully, pending some MMs or some random news event) be some more downhill skiing.

Speaking of random (but amazing) news:

Our fund picked up COLY a few weeks ago and COLY was strong armed into a buyout by the evil Pfizer corporation (just kidding..not 100% evil..just brilliant capitalists).

But we gained 160 percent off of that trade and dumped it to buy some Berkshire Hathaway purely so we can attend the conference.