Wednesday, October 26, 2011

More Upside?

The market managed a successful test of the TA this morning as it bounced right off from there. And unless the market reverses hard tomorrow, I think the market will keep rallying to the 200 day ma without any more significant pullbacks. I would have never guessed one single wave from the panic low of 1074 would reach this level. And it goes to show that whenever there is panic there is a lot of cash on the sidelines just waiting for the scared ones to sell. And just when the scared ones are probably buying back what they sold, they are going to get a big surprise to the downside.. unfortunately, the ultimate losers are usually the unsuspecting retail traders.

I took some shorts today and made some of my points lost on my previous short back. And I'm waiting for either the 200 day ma or a bearish TA signal to short again. Fortunately, I have a long portfolio that I don't trade and that has been going up nicely. But on this trade account, it's hard to go long at this point unless there is a substantial pullback.

No comments:

Post a Comment