"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10

Tuesday, December 11, 2007

Bearishness to return soon?

I am leaning that way now that Santa is in full flight. A chart has been added to the front page of the website that should about sum up the situation. In parting with QLGC & CCMP, I sold what I consider to be two good companies below where I think they are going in the near term. But how many times have you seen me sell too soon, eh? I tend to buy early as well because I buy when downside risk is minimal and sell when risk increases to levels I find unacceptable. The volume on the major indexes looks pathetic and Jim Kunstler makes a good point thusly:

Anyway, this argument is academic because the Hope Now Alliance is just a political sham. The purpose of it is not to save the hapless occupants of over-leveraged houses, but first to buy a little more time so that the worker bees in the financial industry can justify awarding each other multi-million-dollar Christmas bonus packages, and second, to postpone the "workout" of all this bad investment as far into the future as possible.

Edit (12:36) I would like to thank Texas Instruments for a nice little 10% trade in the semi sector. Only Mr. Softie left under the tree.

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