RawGreed, midday update

Posted on December 7, 2005 , filed under Stocks | Print This Post

The market is teetering back and forth as we move toward new highs. In trying to get a handle on the opinion of professional investors and portfolio managers, I’ve concluded that they appear to be mixed over a sustained December rally. From my own observation, each day since November 22nd, 2005, the Dow has reached over 10,900. In the few instances we have approached a striking distance of 11,000, the market has seen a pullback. This has happened almost everyday since November 22nd, 2005. I believe the market is overbought and additional drops are possible until a mid December to late December rally that will take the Dow over 11,000 and the Nasdaq over 2300. In the meantime I see two categories of stocks that have risen aggressively, airlines and gold. AMR, AMR Corporation and CAL, Continental Airlines, Inc., in particular, have experienced a steady rise since early October this year. Gold has risen to a 24 year high and is currently trading at $514. If I were to short shares of airlines, I would short AMR and CAL. For gold, I would short BGO, Bema Gold Corporation. BGO is a volatile mining company with good daily traded volume that rises or drops heavily on speculation.

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