Friday, August 5, 2011


The market continued to sell off as expected and it almost reached my August target this morning. Who would have guessed the sell off was going to be this steep.. in a way it reminds me of the flash crash from May 2010 in that a lot of the selling was computer generated. So early next week we should see a counter rally and like I said yesterday the target will be the 200 day MA. The bearish channel is so steep now that it could reverse violently to the upside, what we got to look for is the high of the next wave to get a general idea of the trading range. I couldn't help myself this morning when I saw the market at 100 points below the TA, so I bought a few shares when the market was pushing 1160. Problem is by the time they executed, the market was around 1180 so no big deal. I'll sell this lot early next week hopefully.

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