Friday, April 16, 2010

State of the Market - 4/16/10

Not a good day on Wall Street today as news about fraud at Goldman Sachs (shocking, I know) caused sellers to take charge for the first time in a long time.   This was a good day to be away from the computer and that is where I was, as we took our boys to Chuck E Cheese's for a family fun day.   I know I had more fun that probably most traders out there given the selling we saw.  Today was the first 1% down day for the S&P and Nasdaq since February 23 by my count so in the grand scheme of things, a day like today was LONG overdue.  However, the two major indices look like they will manage to still close above their 9 day moving averages for the umpteenth day in a row.   So overall, although things look bad on the surface, maybe today was just a long overdue pullback.  I do think we'll have to wait until next week to see if it is the start of something more serious. 

My stops did there work today and got me out of all of my positions.   CISG was stopped out around $27.54 for a small gain (3-4% I think) and CYD was also stopped out at $19.62 for a 2.3% gain I think.   Gold had a major breakdown today so I was stopped out of UGL for a loss, and also stopped out of UCO for a loss.   I don't have the percentages right now.

Enjoy the weekend - if we get further selling, then I would guess we start a pullback of maybe a few weeks, but every dip has been bought for almost 40 trading days so that instinct might take a while to change.  There really wasn't a whole lot of damage in individual stocks either on a cursory look through my scans, so I think we have to wait and see here.  Earnings will make things difficult as well.   I am totally in cash now but will stay biased toward longs as of now.   Take care.

No comments: