ST Trading
The put/call ratio is set up for a short today.
With the recent rally being 25 points long and several IT indicators suggesting market weakness, I will go short for a move of about 15 points.
However, the market seems to be rolling over already. I initially expected it to open with a gap up that I would sell. Since I am being selective on the short side in an uptrend, I will wait until after the 10 am data to sell. If, by that time, it does not rise above 1280, I may postpone shorting. I will also use the 7h EMA as a guide, an hourly close below it signaling the top has been made.
Longer term, I think the market will correct until mid next week and then start moving up again until the Fed meeting in the last week of January. I expect an intermediate term top around that time.
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