with the fed call yesterday being pretty cautious and the new data today showing slowing GDP growth (below 2%), increasing inflation due to food and energy pricing increase (highest in 2 years) and higher unemployment claims (>425k), don´t you think we are being set up for a big drop in the market? A correction, better said? I have this sneaking suspicion that the big funds are watching the average investor dump their money into the market. All the analysts keep upgrade or re-iterating buy ratings on stocks that are already pretty high and the hedgies are sitting back waiting to load up on additional short positions. If you look back at short positions on nvidia, the last time the short positions increased, the stock dropped from 19.50 to 17. After that drop, the short position decreased. Now the stock in back in the mid-19s, and the short position has increased again by 30%. I am getting a bad feeling that something is going on. I have been thinking about getting out while the getting is good, but the earnings that have been coming out are pretty good and indicative of solid future earnings. Problem is that those solid future earnings are based on strong GDP growth. Everyone is saying that the inflation is temporary and will go away and the GDP slow down is also temporary. If the QE program continues until summer when oil prices historically surge by themselves without any help, we could see $6 gas by then. How is that going to help the economy?? Something smells funny. I am going to change my sentiment to hold and think about dumping my holdings and even shorting.
I know you are in your blue velvets enjoying the surge in price, but I think you are doing so because you see what´s coming and that is the coming correction. The higher the stock gets, the farther it can fall, so it makes a much juicier short.
Here are the words in case you forgot....
:) I might get lucky!
She wore blue velvet
Bluer than velvet was the night
Softer than satin was the light
From the stars
She wore blue velvet
Bluer than velvet were her eyes
Warmer than May her tender sighs
Love was ours
Ours a love I held tightly
Feeling the rapture grow
Like a flame burning brightly
But when she left, gone was the glow of
But in my heart there'll always be
Precious and warm, a memory
Through the years
And I still can see blue velvet
Through my tears