Pullback Time

So it’s obvious now that the market is turning. The question is how far is the pullback. I think we’re just at the beginning. I can’t see many pside catalysts for a long time and I do think Q2 earnings will show the losses in loans, commercial loans and credit cards that have been having over our heads. So we have a period of time where we don’t have huge upside catalysts, we’re likely to pullback and drift one way or the other.

Over the weekend, and even Monday, I was putting in stops under all my recent buys. And so Tues and Wed, many of them were automatically triggered, and the emails from my brokerage account came flying at my blackberry. So now I’m out of my FIG (Fortress), MA (Mastercard), some GS (Goldman), some JPM (JP Morgan) and some BAC (Bank of America). All fine, because they look like they are headed lower. If you look at their charts, and charts for the market and for many stocks, they are all broken (from a technician’s point of view).

The good news is that we will see buy opportunities over the next several weeks. Timing of course is uncertain, but it’s definitely coming. There is a lot shopping to be done, so put stocks on the radar, get the cash ready.