Wednesday, August 6, 2008

The Paris Hilton Rally

I'm calling this one the Paris Hilton - big deal for nothing. As a homework assignment in a stocks course my task was to watch the fed 2 year funds rate 5 minute chart at 2:15pm on Tuesday and then check out the SPX 5 minute chart and just watch the action. The funnt thing was that the 2 year Fed Funds rate wasn't really doing anything and the SPX took off like a rocketship. I didn't know what to make of this.
What is the catalyst for this meteoric rise, a 300 Dow Point day? I'm a neophyte and this just makes no sense. Slope of Hope called it the Seinfeld Rally (a show really about nothing.)
My call is that this baby is going down, she's gonna get back to where she belongs. I hope I'm right as I have a SPY 130/132 bearish call spread going on. I know I screwed up the entry a few weeks ago but overall .. there's no beef here.

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