Friday, February 24, 2012

Is the top in?

The market turned bullish today as I was expecting but not bullish enough to break thru resistance. Also, today's high came in low volume so while there is still a chance we see 1370+, the odds are much lower. The market is ridiculously overbought and overdue for a correction, everyone knows that at this point and it's just a matter of a little bit of bad news to set off a selling stampede. And by that I don't mean a crash but the start of a healthy correction, something more than a 1% red day (which we haven't had this year at all). So perhaps the top is in finally and I am looking for closes under the Trend Average to confirm this. I predicted correctly we would have a Santa Rally back in November but I never thought would see a wave like this one.

And if the top is in, I managed to short at the very top at 1368 so we'll see how that works out. I basically bought back the SH shares I sold couple of days ago. I also went on margin to buy the VIX and that was one excellent trade as it went up 5% from the time I bought it. So I cashed out on half and retaining half hoping we will see a sell off next week. If everything goes well, I am going to close out the month strong.

Today's trades were logged as follows:


Have a great weekend!

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