are a number of reasons why i think we shouldn't be relying on them for now.
first seasonality. we had a big gap up 6 days ago and we've not filled it. in fact we are consolidating those gains to become reasonable over the last week.
second the feds. this also plays on seasonality but they are there standing-by and will take advantage of a market dip (if there is one) to create a bear trap and ...
short covering rally into the strongest buying season of the year. in their eyes its all about the greater good leading into the strong selling season.
third the Euro Markets. while we have stagnated waiting on the F.C. to either arrive on our door step or be somewhat managed, not resolved completely mind you,
Euro Markets as well as overseas markets have bounced and or in the Euroland case continued to rise. in fact yesterday the RYWVX Emerging Fund was Up + 2.46%. and turned
positive for the week.
i'm just saying with this sideways consolidation .. and more time to agree on a F.C. adjustment, and with world markets bouncing and us lagging their is a developing spring taking
place for the US markets on a short term basis,.. to try and Gap above this resistance that is containing prices.
please look at a 60 RUT chart.... you will NOT see a flater line ,, and the market makers or feds have done this same thing in years past preventing any pullback to allow for a flat market,
as opposed to a down market, into year end ..for new hope for the greater good.
so that said shorts still have to be cautious because of the forces that would like to see the markets end the year up or above 13000 for the INDU... as do bulls because of the
deteriorating growth that has taken place along with weaker earnings a bearish technicals.
thinking out loud ..maybe i take the rest of 2012 off. or leave a small short NDX position on until February .
either way trade small ...until we have something more to trade is the mantra while watching 60 buy & sell signals...
which btw ..approached the 0line to the DOWN SIDE this morning.. but has been RIDICULOUSLY been gliding along it today !
something not often seen !!
im short the RUT .. but may manage that over to the NDX at any given time.. if and when it looks good ill go back to the emerging fund for a short.
however im never playing that one long over the RUT or NDX as its price movements are wild and to hard to predict for AM navs.
Edited by Mr Dev, 06 December 2012 - 03:19 PM.