It looks like the post-Fed related nuttiness I expected yesterday showed up today. The bottom fell out of the market intraday after a couple of tries at last week’s highs. So we’ve hit a bit of resistance and are setting up for yet another potential double-top in this rally. The strong uptrend is still intact, but moving up stops would be prudent for the shorter-term traders.
I dunno, Mike. It is a bit frustrating being bearish. I’ve been bearishly diversified and making positive returns, thanks to gold, but it’s not as exciting as some of the moves in tech and smaller stocks. Should be riding the trend with stops instead of trying to pick the turning point… The summer correction has been elusive this year!
Funny that you read that as me being bearish. Although I’ve been in cash all week, I’m slightly bullish. But we are at the top of the trend channel, and in overbought territory. If I was bearish I’d have just said ‘sell’ or get short. FOr my time-frame (3 to 5 days) I think it makes a lot of sense to roll stops up at this juncture. But I’m by no means calling a major top.
Cash all week? Just this week? Have you been back in action already?
You mentioned a potential double-top in the rally, and that could be correct. The week following options week tends to be negative, so maybe this is the start of the elusive correction. Just a note, that the financial TV folks are all over this as a chance to buy the dip because we’re in such a wonderful recovery and a lower dollar is great for the US.