By Sell Puts
I think today was supposed to be yesterday, given the sell off. The market is back to is old tricks, market down/commodities up. Yesterday I talked a bit about how the instiutions were selling into the propped up market, looks like i was right. The imaginary mom & pop buyers who are buying into this wonderful market, as the government wants us to thingk, were not there today to save the day, no buy programs today. Market falls. whala.
Did any of you out there realize on of the best plays for 2008 was Dollar Tree, McDonalds ran game also. These plays always work in a recession, people buy cheap food. How many dollars will it take to buy a 6 piece chicken mcnugget with hyperinflation? Should we ask Zimbabwee, Dr. Doom thinks so?
Chart wise we are back in the meaty power zone of the channel, chart here. Yesterday was a big test of resistance, if we would have pushed higher and broke out today, i would have thrown a fit like Macke. But we didn't, my faith was restored. My trade idea for the near term is start getting short, if you are not short already start dabbling, if you are long you are greedy. REMEMBER take profits when they are there, they evaporate oh so fast on paper.
