Tuesday, February 2, 2010
Overshoot
The markets are rallying in the overnight market and have overshot resistance zones. I am keeping my short because I don't see us going much above these levels. I have a moderate size position, I may add during the first 2 hours of trade to bring it up to a large position. I am bearish on the market for the next few weeks, and I don't want to lose my position. I will wait out this rally. I expect a reversal lower either later today or a gap lower and trend down day on Wednesday.
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7 comments:
Careful out there owl. This "buy the dip mentality" could be painful.
On December 31st Market Owl wrote :
2010 view
1. It will remain a bull market. After some turbulence in January, the bull will resume. 2010 will be a calmer bull market, with fewer sharp rallies. The most likely scenario is a slow grind higher with momentary sharp selloffs. Those sharp selloffs will be buying opportunities.
2. Volatility will be low. Volatility dies in a bull market.
So far I think you nailed it. Not sure why your trading differently from statement?
I think this momentary selloff will last longer than the ones in 2009. I think the odds are low that we just keep going higher disregarding what just happened in the past 2 weeks. That is why I'm short, I expect another drop, probably down to SPX 1050.
We are all entitled to change our minds due to changing conditions.
I don't know dawg. I feel like we're going to 1115 but that's just my lowly opinion.
But you were killing it so far man.
Looking at the broader picture, the economy is getting better. Just not as fast as Obama and pundits would like. Unemployment is down from it's highs. The stimulus will slowly work. I don't belive for the rest of this year all economic numbers will be getting WORSE. Most likely slowly better.
Again, until we make a lower low, this is just another pullback.
Sold other half of PROV @ 3.51
OL DAWG
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