If you pull up charts of any of the major indexes and draw a trend line across the lows since October 28th, you'll see that the NASDAQ has clearly broken it's steep trend line while the listed issues are doing so now. Now scale your chart back and just look at a 6 month chart and notice the two day stab down off the highs. We are at a dangerous juncture, a point where the market either does the two day pull back run again song and dance, or one where it corrects more deeply.
If my work on other fronts didn't suggest otherwise, I would go with the two day pull back and run again scenario, but there's too much data suggesting a further retracement. I'm sticking with caution here and continue to hold and net short position at this juncture. I do not expect this market to find it's footing at this juncture. It appears more likely that a more significant retracement is in the cards. A push lower that scares more longs to book gains and step aside. The fear needs to grow here to get the next run higher.
If my work on other fronts didn't suggest otherwise, I would go with the two day pull back and run again scenario, but there's too much data suggesting a further retracement. I'm sticking with caution here and continue to hold and net short position at this juncture. I do not expect this market to find it's footing at this juncture. It appears more likely that a more significant retracement is in the cards. A push lower that scares more longs to book gains and step aside. The fear needs to grow here to get the next run higher.
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home