Monday, May 21, 2012

Surprise, We Have A Bounce!

So we have a bounce after six or seven down days. Already talking heads in 24 hour news channels have started identifying the next buy! How come there is always a time to buy but never a time to sell? No wonder that most of the time news is just noise.

What happens next? Problems in Europe gets solved? Will Hallande start doling out money to all Europeans?  Or ECB starts its printing press? If none of the above, then why are the talking heads so excited today?

I closed the short positions and was waiting for a bounce even while the world was ending last week. But today I am reminding myself that one swallow does not make a summer. I need to see how things are over night and tomorrow. I am ready for a quick but vicious bounce and would like to take advantage of it. This is just a technical bounce which will also kill most of the shorts.  Let me remind you how the tape was played last year.

This is S&P 400 Mid-Cap ETF, RFG. To me it looks so very similar. At the same time, I want to be sure about the strength of the bounce. So I will give it some more time. Tomorrow might be a red day and a better entry point. There is no hurry. This is not the last train leaving station.

Now that the Fadebook drama is over, folks seem to be in a hurry to get out of the stock. My time line for Fadebook penny stock was May of 2014. But at this rate, it may come in 2012 itself. The best description of this scam is from NY post.

So we wait for clarity and best odds. In the mean time, please re-tweet this post to someone who might like it and follow me in Twitter @ BBFinanceblog. Thank you for reading