Rally Shmally

Call me a complacent bear, but I think the market has an ass kicking in store for the bulls.

Yes, that's a new low for the banking index. Yes, there may be a major pop due to government shenanigans. Yes, it will probably be a fantastic shorting opportunity.

Stocks on the NYSE are increasingly volatile and less bullish, so until I see some X's here, I'm selling the rips.

If banks can plumb new depths, why not housing? This too looks ripe for bear raping rally, but in the end, this too will fall.

Here is the real bearish smoking gun. The NASI has made a new O, and the floor is a long way down from here. Grab your parachutes!

Bonds failed to rally with the rest of the market, and I trust debt traders more than the equity schmoes. A Treasury sell off will be a huge tell for a sustained market rally.

Despite my bearish leanings, I'm actually long a smidgen of URE. I successfully shorted it towards the end of the day, but over covered my position, and didn't realize this till after the close.

Tomorrow will be a big day, and with the VIX floating around 50, I imagine the swings will be crazy. According to my indicators, the environment still favors cash and short term trading, so there is no need to rush into new long term investments.

Bullshit is $BAC

Bank of America (a.k.a. Countrywide Lynch) "surprised" the Street, and cratered to a new low.

This chart has been screaming sell for months, and unless you have a short investment time frame, stay away from this monstrosity.

The market is putting in a helluva rally at the time of this post. Volatility remains high, so my instinct tells me that this will be an opportunity to get short. Nevertheless, I'm not fighting the bulls until their demand is satiated (I already lost 10 cents shorting URE). I'm in cash, trading tiny positions because I've lost my mojo in this schizophrenic market.

Quote Critique

"Excellent firms don't believe in excellence - only in constant improvement and constant change."
- Tom Peters (In Search of Excellence)

Constant improvement and change is an unfortunate but necessary condition of existence within the rat race. It requires a degree of self loathing to catalyze the desired transformation, for if one is at peace, no metamorphosis is necessary. Alas, adaptation is critical to the survival of any system, and unless contentment is being in a loin cloth under the banyan tree, 'tis prudent to improve and change.