Tuesday, September 28, 2010

Still Looking to Sell

The similarities between now and the beginning of August continued with yesterday's action:

Like now, the market was then pausing after a move up and was ripe for a correction.

Following the analogy, today we could see strength. I do not expect the market to behave exactly the same way but, if it shows strength, I will try to take advantage of a more significant rally after the open - possibly at 10 am when the consumer confidence number is released- to add to my short position, since yesterday I only entered less than half the desired size.

I still expect a move down close to 1100 before any significant upside.

4 comments:

Anonymous said...

Hi, I see that you are expecting the rally from July bottom is simply a bear market rally. If that is the case, why are you only looking for a 40 point correction from here? Are you expecting another counter-trend rally going back all the way to Apr top? Could you please share your longer term pictures please.

Thanks

Adrn said...

Yes, I am expecting this bear market rally to head higher. I think it will reach at least 1170 before it becomes overbought.

sergejriga said...

Good day!
Thank you for your blog, very interesting
read your thoughts on the market.
I want to ask you in what time you see ES in the 1100?
(One week or a few days?)
You swing trader?
Thank you in advance for your reply.
Good luck and more profit!

Adrn said...

Hello sergejriga,

I think the market can reach that level in about 3 days but it is hard to say. If the descent starts tomorrow, it would mean by Friday's close or Monday.

Yes. I am a swing trader.

Good luck tot you too.