Friday, May 01, 2009

Long one unit at 875.50

2 comments:

Anonymous said...

Hi Carl ,

I sold yesterday above 880 and I am back to cash.... one little information I would like to share here is that in spite of the fact that net Institutional Buying and Selling activity was neutral yesterday and the value of their core holdings went down slightly, there was a huge influx of liquidity flowing into the market yesterday.
Since the money did not come from Institutions, it would have had to come from the government or foreign investors. I don't believe it was from foreign sources so that leaves the government.
That level of liquidity, with no upside market reaction on the indexes is a RED FLAG. Was it related to emergency action due to Chrysler? Or, did it have something to do with the Senate refusing to let Judges fix mortgages in bankruptcy? Or, was it about something we don't know about yet? I don't know, but such unusual liquidity action has a reason attached to it, so this is a Red Flag. I still share in general you bullish view but I am looking to trade a reaction of 40-50 points before we rally above 900..... above 880 I will establish some short positions.

cheers
Susn

Unknown said...

Carl - what about sell in May and go away - just a reaction of 10-15% after that super rally March-April , and the economic reality which nobody knows - what are the reasons the market should move 10% higher now