Friday, June 13, 2008

Digging DIG

Today I did a little probing of the strongest areas of the market that haven't broken down.

Buys: DIG, CMI, added MPWR.

Mostly the averages are still a mess but there are pockets of strength, which I'm trying to exploit a bit.

I feel that even if this turns out to be a big bear market this year, the weeklies are reflecting oversold conditions so it is my job as a trader to attempt to exploit these conditions. If it blows up it is a problem of trade management. Even bear markets have rallies! If this next phase breaks down, that will signal for me time to be aggressively bearish again.

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