04/11/06

Sold AKZOY, SPG. Bought MRO, SIL. Monkey see monkey do, I guess.

The fact that the Dow failed to rally 'on schedule' last week, does not bode well for the pattern it has established to continue. Like all good things, they must come to an end. AA posted nice earnings today, as far as I can tell at least. But that plays into the whole inflation fear thing, which might be coming home to roost a little bit here. The fact that the Wall St. Journal published a story on bullishness and raising rates did nothing to quell the fear today, seems to show the that short term sentiment is leaning towards the bears. Japan right now is down, and so are futures.

There is some evidence of short term over sold as well, and the longer that continues and the market slides the more bearish the over tones could become. Nasdaq needs to break through 20 day moving average for some added fuel for the bears. The Dow had an inside day meaningful for two reason, it did not rally, nor did it make new lows.

Some fairly negative patterns in the portfolio, and the rest had inside days. Inside days show lack of conviction and are more comforting when you are short than when you are long.