Bull Trap

Before the close today I made sure to get something across, through the twitter stream.  The last 30 minutes today was a big bull trap, there’s more pain yet to be felt.  Many issues are not yet at support, or haven’t come down onto the 50 day moving average where they should be bought.  I did nothing today, I sat on my hands took the pain.  The issues that I hold still show incredible technical and fundamental strength, but needed to retrace.

I said earlier that I was frying in a hot vat of tech, well by the end of the day it was more like a cauldron full of materials lava.  I’m ok with that.  I’m slowly building my materials exposure, now at 18% of invested capital in the momo book.  I’d like it to be up around 23%.  I’ve got no energy exposure, because I don’t believe crude is breaking last week’s highs any time within the next few weeks, it needs a rest.  It’s building a strong base for sure, and there will be a time to get real long energy, but it isn’t now.

Instead of posting the list of stuff I’m watching closely for entries, I’ll put them on Chart.ly instead, saves a lot of time, you can find them HERE.  This is the stuff I have no position in, but am watching super closely.  I have about 80 stocks total on my watch list, most of which I would like to see come in more.

Look, bottom line, be patient.  The trend is certainly not over, the market just got ahead of itself, let it come back in, wait for 5 day moving averages to flatten out, and buy the dip like a champ.

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