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Bears progress

  1. redabyss

    1,383 Posts.

    The bear's lot is a difficult and lonely one. There are bowels to be voided in the woods, resistance breaks to be covered, stocks that wont behave. A stock's path to doom is lumpier than the path to glory, and harder to pick - but the payoffs can be much higher.

    I had WOW down as my top short. Shocking trend break in May, pathetically obvious bear rally from 11.40. Until it went over 12.50 and I had to cover. And how is a bear repaid for discipline? WOWWOT goes up 170% in a day.

    Low P/E stocks are being treated well. TLS broke out of a triangle today, with target 4.38. After all of the churning of the last few days, must say I'm pleased to see it tradeable.

    The banks are lunging for a breakout and I was forced to cover shorts. If they succeed they will retest highs - but I wouldnt hold my breath.

    These cover losses were more than met by a no-risk play on CBAIGI. I bought a stack of these on Fri at 1.15, receive 1.17 in dividend and franking benefits which I can distribute to trust beneficiaries at $5k a person, and got 30c for it today, for 32c profit per share.

    The high P/E stocks are pretty much doomed. TOL is the last to survive - it has broken trend without falling much. It is doing quite well on a bear rally and could retest the top - but after that, probably all over.

    In the meantime, spec trades are OK. I got out of HDR and BLO today for a bit of a profit. Still waiting for ANL.

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