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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Sunday, August 23, 2009

Market Bull is on, closing shorts

On Friday, I closed almost all lottery ticket/high risk positions, and I'm gathering thoughts. There are several reasons to "give up" on shorting the market. The most important one is the world banks are printing money, banks are NOT increasing lending, so the extra money is going into financial stocks, creating yet another artificial bubble. Many of these financial companies stocks are not worth ANYWHERE close to what they are trading at. BUT you have to know when to walk away, and Friday blew through many stops as well as signals.

If you want to go long here, I have a hard time creating an argument on not going long. The only advice I have is look at the chart of the stock you want to buy, and pick a place where if it "falls to" you will sell. Basically put a stop-loss on.

Keep in mind that stocks could one day open over-night down significantly, not giving you a a good price/exit point.

This blog has highlighted the reality of the economy and this bull will die. A day? A week? A month? A year? who knows, but it doesn't pay to get infront of this bull. So lets cover the reasons why the market bull is on.

Also, I am swearing off buying the leveraged ETF's, they are the devil incarnate. That is FAZ, FAS, SRS, etc. I still have some smaller positions, likely to close them out by Tuesday. If I play them, they will be long out-of-the-money puts/calls on the cheap.

Back to basics, straight stocks long/short.

In any event, a case for the Bull market, using charts
From WebSurfinMurf's Financial Blog

On the right, I have a link to long term trading signal, for 401k, etc (click). It shows the market is a BUY.
From WebSurfinMurf's Financial Blog

From WebSurfinMurf's Financial Blog

From WebSurfinMurf's Financial Blog

From WebSurfinMurf's Financial Blog

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