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So, the market *might be* bouncing today. Perhaps I was a mere 2 trading days early in my call for a bear market rally. Alas, still wrong as I had to respect stop-losses.
Then again, by the end of the day it could be down 200. We just don't know. As Morpheus says, "What is real?"
That's why the wise approach (in contrast to my prediction on Friday) is to wait and have dry powder in those guns. If it's a real rally, there will be follow through in the days to come. It will last a few weeks, perhaps more, like previous bounces, and we will have ample opportunities to buy. Buying too soon will result in getting whipped around, and probably triggering very appropriate stop-losses.
It'd be tempting to jump into the Ultra Financials (UYG) today. It'd also be quite a gamble. More banks could fail tomorrow. I'm looking at other areas that have been strong all day: biotech and video games. Trading especially well today: Activision Blizzard (ATVI), Nintendo (NTDOY), Gamestop (GME), Biotech (IBB), and Gilead (GILD).
Take the blue pill. Or was it the red...?
Disclosure: Long ATVI, NTDOY, GME, IBB, GILD
Posted, with pictures, on my personal blog: www.thestocksurfer.blogspot.com
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