Seems like reality finally woke up today as the market did a lame gap open without conviction and smartly sold off. We started off very positive at least in the Dow and yet the Nasdaq acted like a sick puppy. Alot of previous leaders diverged early showing the market wasn't all there to break to a new high. GOOG, BIDU and others continued to sell. Goog broke down some, where BIDU seems to maybe putting in a short term bottom. Rarely does lemming money give up buying the pie in the sky without a bounce. I am looking for a gap down reversal or gap up retest and take out the day high play. Will probably play it light, being it is such a thin and deadly mover if your on the wrong side of the trade. Outside of that the trade seems fading the gaps and shorterm run ups.
Outside of the market I had some interesting conversation with a real estate money man today. He was talking about how out of control things are in Florida and the stories he told pretty much confirm what I believe is a top to this real estate bubble. I think within the year it blows and when it does it is going to be ugly. There is soo much cheap money funding this fantasy that when it drys up, there is going to be heck to pay. And of course if you were paying attention, our great leaders passed the re-vamping of the bankruptsy laws. So when things hit the fan, there is going to be alot of pain and many people will be financially crushed. I wont get into this now being this subject has been beat to death and of course more signs of a top is when you have money managers writing into the Wallstreet Journal telling us how it is different this time. Yeah ok. Remember, there is nothing new under the sun and fear versus greed is inborn and will never change.
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