I Couldn’t Resist

AAPL BOUGHT 100 MARGIN $133.79 $13,379.00
AAPL BOUGHT 100 MARGIN $133.79 $13,379.00
AAPL BOUGHT 100 MARGIN $133.78 $13,385.00
AAPL BOUGHT 100 MARGIN $133.78 $13,378.00
AAPL SOLD 400 MARGIN $138.90 $55,552.38

Today was one of those days where everything ended up just right. What a trader’s rush! A huge gap down off AAPL’s earnings, followed by consistent selling until mid-day. GOOG was down over 50, AAPL down over 18%. Then stocks found a bottom and rallied relentlessly all the way up until the bell, creating hammers and strong bounces off moving averages. This pattern is consistent over time as early selling shakes out all the stop orders and weak hands. The only problem with such easy money? You don’t get many days like this.

01_23_08_aapl.jpg

I will go back to watching unless the market gaps down again tomorrow, in which case I’m tempted to catch another bounce attempt as momentum reverses.

I’m predicting a fairly consistent short-cover rally for a week or two until the market finds resistance underneath its short-term moving average. But I’m not willing to bet on that. Especially with the broader economy looking like such crap and with earnings season being upon us. Bear market rules apply.

Looking forward, I agree with George Soros’s sentiment on the market and the economy.

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