Thursday, January 28, 2010
Overnight Short
The closing 30 minutes of trade can tell a lot about a market. The successful Bernanke cloture vote got the traders excited, but this market doesn't have the gas to go higher and finished weak in the closing minutes again. That's the 4th weak close in the last 5 trading days. MSFT and AMZN numbers were great, as expected, and there isn't much reaction to them. Tech is overowned, we still need to work off the extreme bullishness that was built up over the past couple of months. I am going to keep my short position overnight.
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6 comments:
But almost every technical indicator shows a very oversold market.
Doesn't that fact worry you ?
Now I have to say that you're getting greedy.
I am being greedy, and I don't think we'll bounce back so fast because of all the technical damage. There are a lot of freshly minted bagholders above who have yet to puke out their holdings.
I think its the right move. SPX closed below 1090 so now 1090 is resistance and 1060 is support. Whilst we stay below 1090 I'll continue to stay short and start covering as we approach 1060.
anon,
i was aksing myself about this lot when i was getting stopped out on an overbought market, going short.
On this way down i have cleared most of my shorts and still have some bullets left.
Really don't think we will get a buying opportunity until monday.
Great audible this morning.
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