Quick one: January 27th, 2009
January 27, 2009 – 11:03 pmI am really feeling bullish right now. S&P futures are cooking as of this current hour. Could this be the beginning of a true multi-week bear market rally? As many of you know I have been bullish for about a week and a half now and currently have less than 10% in cash and only two short positions.
For those of you who watched my video from last night, I explained how the Dow Jones Transportation Index was beginning to look bullish. Transport names for the most part were on absolute fire today.
Burlington Northern (BNI)
Union Pacific (UNP)
With this in mind, so keep in mind the much larger picture. We are currently in the worst economy since the great depression and signs of a turnaround aren’t anywhere in sight. With the exception to maybe the TED spread and slight easing of credit, this doesn’t really do much for consumer confidence. 6000 Dow and 600 S&P are around the corner.
Take a look at the Retail Holders Index (RTH). The green area represents a shorting opportunity of a lifetime if the index even manages to get up that high.
American Eagle Outfitters (AEO) compliments this chart. The green area again shows a primo shorting point.
