Today ended the worst week of the year (percentage-wise)
AAPL broke 85 but did close above it
Last hour of trading was suspicious
Perhaps next week will yield the illusive oversold bounce
The financials suck - it's stupid to short them down here and it's dumber to buy them...or is it the other way around? SKF is still a short with its 5 day RSI at 87.89 (cover when 5 day RSI crosses below 60)
SKF
2 day SPY
Friday, March 6, 2009
Friday
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2 comments:
Hi, I followed your call to short SKF. I think your analysis was good. We never know what will happen, but I appreciate it.
What downside target do you see for SKF?
The downside target is determined by the 5 day RSI crossing below 60. That said, I would be looking at 200ish.
Closing off of the highs was a real good sign so I still like it short. Look at some of the other spikes and you'll notice similar behavior. Of course, as you said, you never know. The gov't could change the mark-to-market accounting rules tomorrow as they've been talking about and SKF could shoot to 350 or down to 150. Trading the financials sucks right now but at least you know what you're getting yourself into.
Best of luck.
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