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November 23, 2005

More of Yesterday

This week is turning out to be boringly predictable. Thanksgiving week is traditionally a strong one, particularly the two days around the holiday. Add in a mix of performance-challenged money managers and only a dash of volume, and you have the recipe for a rally. Interesting enough, today's action produced sell signals in my oscillator for Beazer and Yahoo (I have held YHOO puts for some time and may add to them). Both of these stocks have gone vertical in the passed week, but seem to have reached exhaustion. If the spikes continue, the signals will be stopped in short order.

I have a feeling the recent market rally is on its last legs, but our grand experiment, described in yesterday's post, could be triggered by a last stretch in Google's price. Google tacked on another $7.50, bringing it $6 closer to parity with an ounce of gold. The metal gained a tad over a dollar today.

The market probably won't be giving us traders anything new before next week. I wish everyone a Happy Thanksgiving.

Disclosure: Short BZH; Long YHOO Puts

 

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