Friday, December 3, 2010

Market Update - December 3rd - Another high coming soon

The market refused to go down today despite the obviously bad news on job creation. And prior to the announcement the EMinis had made a high for the year, so I think a higher high for the year is now a given. The fact the market refused to dive and traded sideways was an indicator of lack of sellers and enough buyers who believe we are going higher. I am holding short but I went hedged this morning at 1219, I was actually able to pick up my FXI at a cheaper price than when I sold them at 1205 so it works out in the end. The bearish MACD cross, the overbought RSI and this morning my confirmation for entering shorts all failed. So it goes to show this rally is just barely getting started. With that said, we should get a pullback to the 1200-1210 area before going higher. Perhaps Monday will be the "delayed" sell off, either way I'll be able to sleep ok this weekend.

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