The GOOD~ The week is over and you had a good day (Please, Please tell me you went short for the day!) And even while we have ended the week at the bottom of the channel, we could bounce up. If that happens remember it could just be a dead cat bounce!
The BAD~ The bear flag is close to breaking to the downside. The DOW could not hold 11,000. We have the entire weekend for bad news to develop. It's September, typically a not so hot month for the market. Greece is on the toilet and the Europe has a really bad hangover (see Wednesday's note about the party).
The UGLY~ Take the bad, add Monday Morning Blues, stir in a little bad news over the weekend, and add a pinch of fear and we could see the downside drop. Friday' candle for the DIA poked it's tail thru the bottom trendline and wilh just a little push could easily violate the bottom of the channel.
And a breach of the channel could get ugly with the current state of affairs. First a test of the Dow's August lows (10,600), then a quick stop at 10,500 on it's way to the magic psyche level of 10K. Break that and you'll need some K-Y if you're long. So the message here is a resounding cry to keep your powder dry! Watch your trades closely and be ready to jump out at a moments notice.
Enjoy the Weekend~!
Current Trends
Long Term - Sideways with a down bias
Medium Term - Sideways with a down bias
Short Term - Dowm
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