Friday, August 8, 2008
Friday's Time Sensitive Intraday Psychology
Good Afternoon to all! The markets continue to fool the herd at every turn, yet we are more than satisfied with the reality of crude being down almost $4.00/barrel at 12:30 pm ET. The oily bulls have had a stranglehold on long equity positions for too long, and as the saying goes, 'paybacks are a b-w-itch'. POTC stands by our Thursday recommendation to short the S&P into strength, and we have initiated a short position in the S&P emini futures contract at 1,288. Only aggressive portfolios should follow our lead. Besides oil, which has fallen over $30/barrel in less than a month, there are no catalysts Monday or Tuesday. We feel the potential for geo-political tensions to erupt over the weekend, as well as unforeseen events at the Beijing summer Olympics trump the move down in oil, therefore we have strong conviction shorting the S&P at 1,288. We do not feel today's S&P gains are sustainable as the day evolves... We remind you of the prediction we made regarding the oil trade months ago: “Remember, our belief is the crude oil bubble will burst after the Beijing Olympic starter pistol is shot, and that shot will be heard around the globe in August.” http://psychologyofthecall.blogspot.com/2008/06/psychology-of-coming-weeks-economic.html We wish everyone a happy and healthy weekend. We always stress practicing the 11 Commandments since the market is two sided and offers you great leverage. We urge aggressive portfolios to take advantage of the opportunity today. The Psychology of the Call team welcomes you back Saturday night for the "Psychology in the Upcoming Week's Data."
Posted by The Call Team at 1:31 PM