Monday, December 19, 2011

Ready to Rally

The market put in another bearish leg almost following the red line I drew on Friday and now I think the market will start to rally. Perhaps we'll see 1199-1200 tested first but I am going with the Santa Rally. Obviously, this is completely against the TA system which call to stay in cash or short at 1249 and the fact that we are trading under the 50 day MA. However, it's been an 11 days of corrective waves and we have yet to retrace 61.8% of the rally from 1158. So any hint of positive news can spark a violent rally. I will go margin long again once the TA gives the signal, as of today the TA has fallen to 1229.

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