Thursday, December 23, 2010

Market Update - December 23rd

The market did not do much today but it did trade as if it intended to make another push higher. I could have covered my SDS position at break even but I think the rally is about done so I rather miss the upside than the potential downside. I am looking for topping patterns to develop so we'll have to see what Monday brings. We could possibly have an up day on Monday to form the head of an Head and Shoulders formation if the wave is in a W4 count. If this is not a W4 then we'll probably see a double top or triple top formation. We did get a short term reversal on the moving averages and that has potential to turn into a bigger reversal but for now I am still assuming higher prices as long as 1246 doesn't get closed under.

No comments:

Post a Comment