Sold FXP again

I keep writing new record of myself. I sold FXP at $81.76 today and made a 15% gain in two business days. I have to acknowledge that I sold prematurely, only to watch FXP went as high as $86.46.... I did not expect that kind of movement so fast because when Merrill Lynch issued a warning on larger write down on upcoming earnings report (due this Friday) the stock actually went up. But it didn't happen to Citigroup today.

Intel's report definitely does not help the market tomorrow. I guess tomorrow should be the climax of selling. Thursday and Friday may slow down a bit as some other financials including JP Morgan, Merrill Lynch, Wells Fargo, Washington Mutual, Bank of New York and etc are reporting. But since they are financials, probably their numbers are in Wall Street's pocket. Significant surprise on the downside is not quite expected.

I also need to acknowledge that my previous prediction of 2008, specially on the Chinese stocks that I have been talking about, are being violated. I would put all those stocks on hold, or be more aggressive, sell them at a good time to cut back long position. I may want to get out from FMCN for now to try to minimize the loss. As well, I'm still looking for chance to unload my HFU in Canada, as I was wrong on financials having a rebound last week. But glad that I didn't initiate a big position.

You may still hear people saying we are not going into recession. Again I want to emphasize, it doesn't matter. If there are a large number of investors do not believe the market is going up, they will sell, and their transactions will show on the graph. In a downtrending market it's easy to pick a stock to go down than to go up. This is what we call "Don't fight the trend".

I probably have not mentioned my thoughts on solar energy stocks, but I really want to say, I know many solar energy stocks are going to come down with the market, because the market in a whole is going down and as well, these stocks have had crazy runs that their 20-day EMA significantly outpace the 200-day EMA. Same story to dryship stocks earlier in 2007. Too bad I do not want to short individual stocks.