A bit of this and that

Rather uneventful day today. Bears tried to take the market down but bulls said "sorry homey don't play that". Browsing the bear blogs I sensed quite a bit of frustration and hopelessness...quite the opposite of the blow jobs these guys were giving each other a few weeks ago when the market dipped in late October. This could be yet another sign that the bears could be thrown a bone soon...we'll see.

I mentioned the other day about how "dumb money" acts within the first half hour of the day and "smart money" in the last hour of the day. There is actually an indicator that tracks this movement. The "dumb money" vs. "smart money" trends is something I touched upon back in the spring which at the time was giving the bulls a green light....this time around it's giving the bears the green light (or should I say red light?).




Since about September 23 the smart money has turned bearish while the dumb money bullish. Although the market is higher than it was on Sept 23 it's not by much and this indicator tends to be early when giving a signal in the opposite direction of the current trend.

I get the feeling that tomorrow or Thursday could be an inflection point day where we could see some sort of downside reversal. Don't ask me why...I just get this feeling based upon everything I've been seeing. But I'm going to stress this again to all you bears...don't ever expect instant gratification when you go against the grain. Although my gut says tomorrow could be a bearish day I'm prepared if it's not.

I also find myself falling in love...with a stock. A little company I uncovered called Bennett Environmental. A true turnaround story. This company was left for dead after its former CEO was involved with Fraud. It went from a $20 to $0.13 and was left for dead. Now it's back to $1.15. They've really turned themselves around and future EPS for the next 4 quarters is practically guaranteed to be huge relative to the current stock price. This is one of my "investments" as I plan to hold this until at least March of next year. This is one of those "story stocks" that tends to have very high company specific risk and low systematic risk (general market risk). It can become very easy to be attached to a stock when you watch it progress like this...it's like experiencing your kid grow up.

But I know better than to fall in love this way. I will cold heartedly give this stock the boot if I sense something is wrong and short term noise volatility doesn't count as "something wrong". Stocks like this can swing wildly from day to day especially after having a big breakout like it has. I will try my very best however to "be right and sit tight" with this one.