Gekko Rocks

And he was so right. Greed will save the USA

Bears.....You are Dead To Me, Dead I Tell Ya!

The title line of this post pretty much sums up my feelings regards even the slightest possibility of halting this current market rally short of 1050 or so on the SPX. Even on a sleepy summer Friday after sliding in excess of 150 pts on the DJIA on less than rosy Consumer Sentiment Numbers the bears exited the field early and the day ended barely nicked with a loss of only .8% The market now is an absolute Juggernaut certainly not to be stopped during the sleepy dog days of summer.

The one thing that concerns me is the Over lopsided short dollar trade. Everyone including my feckless receptionist who also noticed the overly lopsided looming bearish head and shoulders patttern of about 2 week ago is short the dollar. I even recall reading that one of the Victoria Secret Hotties demanding pay in Brazillian Real. When it is this obvious it usually is not recall crude oil at $140+ obviously going straight to the sky? A strengthening dollar would derail this market pronto. I have not come up with my catalyst yet for this but it is high on my research list.

We have gotten very lucky here at AEIG LLC, on our last couple of levereged directional calls, which I blogged earlier. I am thinking we coast higher into the end of summer, what lies ahead is opportunity, as this market could be a real snapper to the upside fueled by the underinvested and late to the party retail crowd, or a repeat of last fall. I do not feel it will be some where in between, only one of the extremes.

Good Trading

Ex

Rretrace Thursday

Just a quick screed tonight. Wanted to get this out lest I seem disingenuous and post it after the fact some time tomorrow. Yesterdays swing long into the close in NQ_F worked out with almost frightening success. Historically the day after Fed day is a retracement. I am thinking today's move was exaggerated to say the least, based on no real substantive news and the close was telling. Flipped the same NQ_F position short for tomorrows expected blood bath. I am thinking I win on this one too!

Just recently finished watching Bed Time Stories with the little gladiator twins. A fine movie all around, rarely go wrong with an Adam Sandler flick. What struck me was that the final score was I think I am in Love by Eddie Money and the little Gladiator Twins knew Every word! This would be a testament to the time spent in transit to a very active little life with Mrs Gladiator, and a narrow selection of classic 80's pop always blaring. Now Eddie Money and Rick Springfield et all are fine, but I am trying to raise little Gladiators. Hence the Above. A more active role in the musical proclivities of the precocious two and a tutelage of the finer points of Angus and Tawny Kitaen shaking her money maker on the hood of a Jag will begin henceforth.

On to the markets. As I run a very eclectic total return portfolio for qualified individuals, based roughly on an adherence to absolute return market timing, and worshiping at the house of what is working right now, I could not be happier. We nailed the failed beak down weeks ago and have been long and leveraged since. What to do now is the question of the day. My proprietary giddy Bear indicator tells me there is still much more upside ahead. Combine this with the vast majority of under invested long only portfolio managers who will chase this market higher in the low volume dog days of summer and I see S&P 500 at 1050, an important technical number sooner rather than later. Shortly after that, well that is a different story. Swung hard long after the close(disclosure long NQ_F)in anticipation of benign news out of the 2 day Fed meeting tomorrow. I bet I WIN.

Good Trading

EX