Monday, December 7, 2009
Tactical Outlook
In a range bound market like this, thinking tactically can be better than thinking strategically. If this market is having trouble above 1115, then you have 10 points of possible heat to take when shorting at 1105. The market has proven that it has trouble going over 1115. It has also proven to have rejected 1080 as a level. Unless one is betting on this market breaking new highs, you have to lean short above 1100. So you are risking 10 points for 25 points of downside at 1105. Also, if odds are that we'll likely test 1067 before 1140, then you have to lean short. Let the market do its thing. No need to be perfect timing it at this level. Market has spoken. It doesn't want to stay above 1115. Trade accordingly until proven wrong. Sustained trade above 1115 proves you wrong.
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2 comments:
Damn man, everyday I watch this WXCO go higher but can't do anythign because I sold it 80 cents ago. Jeez.
I think mkt will shoot a little higher create a little all time high. Then sell off till Christmas. Then bounce.
Dollar and gold are sort of ripe to reverse now.
Also mkt didn't get hit too bad by gold and dollar, and it's lack of sensitivity can be interpreted as bullish.
And I think in general, the hedge funds and funds in general are not going to let the market go down much this year to protect their gains. Next year, they'll probably start selling at 9:30 1/2/10.
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