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Wednesday, May 6, 2009

Talk Is Cheap

I keep hearing Bear Market Rally (blah, blah, blah)!
Remember that it's darkest before dawn.

Had I filter out the noise and realize this sooner, then I would have been better off.

SP500 broke 875 to the upside.
Even if there is a market sell off, 875 becomes support.

I still play a few short here and there to protect some long positions, e.g. 401k, IRA. It's like the left hand is giving to the right hand. At the same time, I am starting to scale out 401k proportionally as well.

Alert still shows more bullish than bearish technicals.

As the saying goes, "Action speaks louder than words."

Right now, the market action definitely outweighs cheap talk.

I keep telling myself that I will buy on a pullback, but a pullback from where?

For example: if you see a stock run from 20 to 30 and buy on a pull back, where would you buy it at? Let's say it pulls back to 25 and you are willing to buy it. However, it's still 5 points higher from when you first saw it.

This phenomenon is call opportunity cost.

Read that tat.