The Alternative
Gil Morales, on Gary Kaltbaum’s radio show today:
“There are two things that happen when a market gets as oversold as this one is — it either crashes or it rallies. And so far, it hasn’t rallied.”
“So, figure out the alternative here, and I’m thinking we may be headed more in that direction than headed back to the upside.”
We can hope he’s wrong (and he probably does too), but from everything I’ve seen and heard, Gil’s a pretty smart guy.
As Mr. Practical would put it, risk remains high.
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I too am sure that Gil hopes he is wrong. And, it should be noted, as he pointed out in his interview with Gary, he uses stops when and if that will happen. Sooner or later. it will, of course; the question is when, and perhaps even more important, does that “when” only mean a very short term or something of substance. As Investors Business Daily suggests, staying on the sidelines at times like this is the only prudent thing to do; and so does Gary Kaltbaum incidentally.
Comment by Mike p — 3/10/2009 @ 9:12 am
Thing is, the trailing stops he was talking about yesterday were the trailing stops on his short positions. He said he was surprised that the market, even on the bounces, was failing to take out his stops — which is why he remained short.
Comment by BMB — 3/10/2009 @ 10:21 am
Wonder if they got his stops today?
Comment by Bruce — 3/10/2009 @ 4:58 pm
I was wondering the same thing Bruce. I’m guessing that they did.
Comment by BMB — 3/10/2009 @ 5:42 pm