Friday, February 12, 2010
Setting Up for A Big Slide
The market is setting up the bulls for slaughter. Looks like the shorts panicked at the close and closed out their positions ahead of the 3 day weekend. The risk reward for longs is very poor at these levels. I see at most 10-15 points of upside and 50 points of downside. I hope to see traders get bullish next week which will allow me to short more aggressively.
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7 comments:
Shorts are going to get wiped out next week.
How can you look at todays chart and think anything but bullish. You must be nuts.
Shorts had every chance to crush the bulls today but couldn't.
Hey owl,
Think that the big boys new about this invasion or offensive in afghanistan and pushed the price of gold up. Dollar and Gold rallied together and bonds took a hit.
Either gold is i its next leg up or is nice bear flag.
What do you think?
Here's reinforcement for Market Owl's beliefs:
http://www.decisionpoint.com/ChartSpotliteFiles/100212_cspot.html
Carl Swenlin sees an inverted flag which is bearish. He makes the case for continued bullishness, but overall, he believes the market will turn down. You bulls better watch your a$$.
Bad link above. Just go to decisionpoint.com, click Top Advisor's Corner, and look for Carl Swenlin's latest Chart Spotlight.
I don't have a strong opinion on gold. But it seems to be holding up fairly well in the face of a stronger dollar.
Petsamo,
I guess you didn't read the last line in Carl's article..
"If the S&P 500 suddenly breaks UP from the inverted flag, I would change my short-term outlook from bearish to neutral, and await a new buy signal from the T/TM."
So IF we go up next week, not down. He is no longer bearish short term!!
Who knows. We may go lower at some point but right now I SEE from the charts higher lows and higher highs. The only bearish sign is we are moving into over bought territory.
imo we are going to test 1100 and if we break it there will be a double top in the market. i think the mkt became complacent because it got the 5 to 10 % pullback it expected. nevertheless I am not going to be fully long the whole way up because a lot of bears are going to be popping up every step of the way
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