Friday, July 1, 2011

What a rally,,

The market continued its bull run today in a W3. Last time I saw anything like this was in September 10 and I read in the news this is the best week for stocks in 2 years. So if anyone had doubts about the bullish trend, this week should settle it. The market is now overbought in the short term so I expect a pullback or a sideways correction starting Tuesday. If we get a pullback, I am looking for the rising TA as an entry point or alternatively the 50 day MA as many people who missed the action will get on board at that level. I went hedged at 1332 (shorted an equal amount to my longs) in anticipation of a pullback. Just like I said last week to expect a violent move once the market and the TA were within a few points of each other, whenever the market shoots up by more than 30 points (in this case 40), there is usually a pullback or sideways trading until the TA catches up with the market.

Have a great holiday weekend!

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