Thursday, June 2, 2011

Ugly!

Yesterday's drop is so ugly on the daily charts that I have to put aside any rally scenario. It was the first day of intensive selling after the lunch in a very long time.

It was late anyway for a move up with the end of QE2 in sight and everybody looking for a replay of 2010. I even saw today the "double-dip" words used in the title of an article.

So, I think the market will be weak until the put/call ema reaches oversold

The next big opportunity to buy will probably arise as soon as the retail sales pace of change starts to accelerate again from the lower bound:

Meanwhile, I will try to trade shorter term, maybe post some of the trades in real time. I will also analyze stocks and build a buy list as long as the market does not give clear signals the bull has ended. Until now, this has not happened.

1 comment:

Anonymous said...

Adi, thanks for the Update!
I think market may trade within range for a while before making a big move. I am still bullish biased.

Tony