Thursday, November 18, 2010

18 November 2010

The Dow gapped up about 100 pts of the 173 it was up today. It looks like we closed the gap down from Tuesday. It also turned out to be a great day to not be short IRE or AIB. Remember, I closed last week sometime and I was upset that I closed a bit early, but overall, it turned out to be the right decision.

What a great day to coincide for a great performance with GM's SPO (Second Public Offering). Unfortunately, GM could not be short-sold today. However, it still declined 5% intra-day. Fantastic.

So in order to bailout Ireland, more debt was taken on by it and other countries? That sounds like a huge plan for failure. Isn't too much debt what got us into this mess? Extend and pretend.

That is what I don't understand about a lot of this: the failed business models - of sovereigns and the state sponsored companies (TBTFs) - have not been changed, we've just thrown more leverage at them and started to pray more.

No charts. Its late. Short-term indicators are around 72% bearish, but becoming more bullish. Medium term basically unchanged from yesterday. McClellan is in a downtrend still, but had a strong day today rapidly slowing the rate of decline.

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