Posted 10 February 2012 - 07:32 PM
"So is this it? Or is it for now?"
The NYSI gave a sell today but there is not high below a high in the NYMO, and the NYMO is down five days in a row, putting it in pretty deeply oversold territory. In addition, on the three 3xlong ETFs I follow closely -- TNA, TQQQ, and UPRO -- none have broken any trend lines nor triggered any MACD cross overs a la Jack Chan. And everything seemed to firm up a bit at the close today.
So, FWIW, I think it's it for now, and we're going to bounce...
Ideally, the NYMO will put in a high below a high on the bounce and if it happens to be below the zero line (which happens fairly often with the indexes close to their highs) that will be a gift to the bears. That gift could last three to five weeks (likely). If the bears can tear apart the entire rally so far this year then this is still a bear market (very unlikely) and there's going to be a lot of jaw-dropping by the bulls.
After this pause, I think we're going higher but if the bulls can turn a bounce into another big run to the upside right now (not out of the question), jaws will be dropping elsewhere as well as I suspect, at this point, a lot of bear-skin wallets.
Good luck and good trading.
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx.
“I spent half my money on gambling, alcohol and wild women. The other half I wasted,” W.C. Fields.