Wednesday, September 23, 2009

New highs and key reversals

Some signs that last night mark's an important inflection point for the rally...the Nasdaq, S&P500 and Russell all tripped over in the last 90 minutes of the day...and marked out key reversals on a daily basis.

In my experience, key reversal's (in this case, a new high but a close lower than the low of the previous day) have good form.  They are particularly canny at picking a change in trend if they occur on a weekly basis (as was the case in stocks like MQG at the lows back in March) but let's not get ahead of ourselves.

The global risk trade rally is on its last legs - time to arc up the size of the short...

I've been working through the FOMC minutes - come back separately with why I think a relatively innocuous statement sparked a sell-off.

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