Friday, February 18, 2011

Time to Try the Short Side

Important economic data has been reported during the week. I will update the charts over the weekend.

Meanwhile, I think the short side can be tried again in the next days. The put/call ratio has finally spiked:

Also, the upside looks limited at least over the short term:


So, it is time again to sell rallies above yesterday's close. However, given that Monday the markets are closed, I think a better strategy is to wait until Tuesday. The market has the tendency to change course only after holidays even if it is ready to do it before.

The ST Trading bias becomes "short" again starting next week.

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