Wednesday, January 7, 2009

Bulls control

Another day with solid gains for many stocks as sellers are still absent, driving the market in more extreme overbought levels. I pointed to the overbought condition yesterday, however this of course doesn`t mean that I not took part in the fun, as it became clear that the market won`t sell off. I catched a few AMZN and some MA for a couple of points. An overbought condition should not in general prevent from buying stocks, but I am more careful and tighten stops more than usual - but thats just how i play it. I still believe some sort of pullback should come very soon, but no telling what happens after that. My ideal scenario would be some days of moderate selling before another substantial move up. If this will happen? No idea! For now let`s stay with the crowd and be flexible if things are changing. EOG from yesterday still on my list today, also BG 57 area fora possible long and TXI maybe on the short side.

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