Thursday, August 4, 2011

Not done yet.. more selling coming

Today was yet another ugly day for the markets in price, volume, and form. The index is now 85 points below the TA (which in itself dropped 15 points), which I have never seen ever since starting tracking it. But one thing for sure now is that the 200 day ma will be the target for bulls once the selling it's done. And for now the safe way to play this is staying in cash or shorting at the next test of the TA which could come as soon as early next week. I am holding a trapped long position from 1321 primarily because of the wave count and my disregard for the 50 day and 200 day MA. So the lesson in all of this, sell when that TA flashes red as that indicator has not failed once in tracking major trend changes. It might get whipsawed at times but any points lost there are worth the gains and the costs of holding against the trend. As of now, I am looking to exit long positions whenever the market decides to test some of the major trends.

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