Today we almost got the day we wanted yesterday. Yup, after a very weak follow thru yesterday, the DOW moved up today. Dow +140 points. Nice huh? So one would think without further investigation. But at 3:30 pm the Dow was up 281 points! In the last half hour, the market gave up half the day's gain.
Talk of Eurobonds to float Europe out of the financial floodwaters seemed to have everyone in a good mood this morning. But talk is cheap, and bailout's just don't seem to last for long. And when China voiced it's disappointment over everyone's financial issues, no one seemed to care for most of the day. Then at 3:30 pm the big boys began to unload positions, take their profits. And this wasn't the usual "last few minutes" of profit taking, it was much more than that. Volume soared~ So before you raise your glass and yell "cheers" over a good day, look again and ask yourself............ why the end of day dump?
Perhaps it was the realization that the "good" news really wasn't more than cheap talk, and was nothing substantial. Perhaps the smart money knows something we don't. Perhaps, perhaps, perhaps. All we know is what the chart tells us.
This market has become so volitle and news driven lately that even a whisper seems to move the market. As such it is virtually impossible to tell where we are headed day to day. So why take the risk of an overnight hold? Dump it now and take what you get. And more importantly the Bear Flag has not withered and withdrawn from the charts. No, no, no!! The Bear Flag formation is still alive and kicking, watching and waiting. The tails on both ends of today's candle tell the story. It's not bad, but it ain't great either.
So here's the read looking at the chart. Bear Flag still valid. Price is moving up in a choppy fashion and looks to be headed toward the top of the channel........ or so we hope. Expect another weak up day tomorrow, but with the flag still there, be watchful for a downside break.
And remember,
Jack be nimble...........
CURRENT MARKET TRENDS
Long Term - Sideways with a down bias, trying to build a base.
Medium Term - Sideways with down bias
Short Term - Up (But watch for potential reversals)
No comments:
Post a Comment