Top Line: The market is being very volatile up one day and down the next. This is the way bottoms are formed. The next few days could be volatile leading to a sharp up move.
Today, MSFT (yes, Microsoft) delivered news that they would release up to 5000 employees. We were expecting an early morning rally after AAPL's news last night but MSFT squashed that thought. Maybe we shouldn't even mention that GOOG's earnings were pretty well received after the market closed. In fact, GOOG rallied on the news at first but couldn't hold it.
This setback gave us another opportunity to use up the last of our cash to buy some more stock...yes, in the commodity category again, energy complex this time. We do Not like to be without cash, though, because we have enjoyed having the flexibility to take advantage of whatever opportunity showed up. We thought that we would be shorting into the inauguration rally which Still hasn't showed up. With that rally we would have lightened up on our long positions and had some cash for further opportunities. Instead, we found some intriguing buying opportunities in this decline.
We've had about enough for one week. Next week is the end of the month which normally brings the bulls back to the party. For now, we'll just wait until next week. Still, if the market goes Down any more on Friday or early next week, these may be good opportunities to buy some more...well, not us due to no cash. We can't let this happen again.
Have a good weekend...
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