Longest Streak Since November. Can It Continue?

Wednesday, October 14, 2009

U.S. stocks gained for a fifth day, the longest streak for the Standard & Poor’s 500 Index since November. The S&P made a fresh 11 month high and keeps defying gravity. I do not have any trading position on the S&P Futures but I am short Dax Futures and feeling the pain. I am off over 130 points in just 2 trading sessions.

But even more frustrating then that is the behaviour in the Euribor Futures complex. I am losing in that position every single day. Quite amazing. Even though, I have the December and March futures so time is on my side on that trade.

But not everything is going against me, my stock picks are doing very well. Dynegy and Hecla Mining are going through the roof.

After losing a few thousand euros shorting Dax Futures I think its time for the bears to charge the market lower. I am as bearish as I can be and I expect a major correction in the global stock markets in the next few weeks.

I will regroup watching Rafael Nadal at the US Open. He will play against the talented Fernando Gonzalez. It will be a close call.

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