Wednesday, July 15, 2009

Follow your green glow

Another large inter-continental-ballistic-market-move coming our way.

Timing markets is fraught with improbabilities. Hence, the refrain that has served well this week "where are the stops?" (sung to the tune of "Where is the sun...") The time will come to get short - but it's not yet. (A small win at this end - as my XJO short came within a whisker of being filled yesterday...)

The primary trend is down but there is room on the upside for the market to run here. Scanning through the various stocks I follow last night, there was a greenish glow emanating from just about all of them. The S&P can make new highs for the year and our market could visit 4200 and beyond (hell - it could even stretch to 4400 where MA and trendlines converge).

Conclusion - there is no need to rush here. See how far the market can run - we want a wash of bullish sentiment to settle in and that will take some time. Once the market is long, and sentiment indicators are running at their highs again, then the risk/reward will tip in the shorts favour. On the plus side, might get a chance to make a quick turn on the DUE and TTS, in addition to lightening the CEU position.

No comments:

Post a Comment