I've been writing about a correction for a while now and the market continues the process of rolling over, so one just have to wait it out. I looked at some possible retracements for this long Santa rally and a proper Fib retracement would be in the 1260-1296 area, with the 200 day MA as the most probably target. The market is overbought and basically we're running out of events (or excuses) to rally, that and the fact that the same problems from last year are still unresolved. So the "sell off" the media was talking about last week when the DOW drop 100 points, is just the beginning for a volatile period that is coming as soon as this week.
I stopped out of the short position at a minor loss but an overall gain when adding the profits from Friday and I bought back the position I sold Friday. So 100% short at the moment and going margin short should we see more upside tomorrow.
No comments:
Post a Comment