MORE SHARK

The markets look to open weak again as global tensions in Iraq Iran Lebanon Israel N Korea India and Syria continue to make the front pages. My take is that it gets worse before it gets better as there is probably more bad news coming from Iran and North Korea as they no doubt stay defiant. The old adage that the markets climb a wall of worry seems to have changed to the markets are worried and their is probably a lot to be worried about.

Revshark on realmoney.com is getting more bullish as the tensions flare and the markets continue to sink. For those who haven't followed the rev, he is generally a momentum trader who likes to buy strong stocks, but lately he has been bullish on the selloffs. He is however, starting to sound like a broken record as he buys every dip and continues to be wrong. He started a hedge fund a few months ago as the markets were hitting their highs and hopefully that has not tainted his thought process. Anyhow, here is what he said on the close yesterday:

"Technology stocks have gone past the point of being ignored to being actively shunned. They have been declared dead and buried, and even the contrarians seem to hate them. The technical picture is very ugly, the mood is negative, and there seems to be no positive news. Despite the overwhelming preponderance of negatives, or maybe because of them, I'm increasingly optimistic about a good playable bounce during earnings season. The psychology of this market is intriguing, and if nothing else it is likely to produce some volatility. I am feeling so strongly that we are going to see a bounce that I increased my long exposure and loosened my stops. I'll be doing more positioning in the days ahead and am primed to become very aggressive at the first sign of strength."

Being aggressive at the first sign of strength has been a disaster trade of late as all strength has been sold so good luck to all who want to follow this strategy.