Monday, March 3, 2014

Too Early to Make a Stand

I would usually say that you have to buy when you see such scary headlines, but this market just closed at an all time high, and was overbought.  So that leaves room for a 2 to 3 day pullback, which would be sufficient to wring out the weak hands, and springboard the market to new all time highs.  From a time standpoint, tomorrow or Wednesday should be the bottom, that is if we can selloff into the close today.

This ES 1840 level is in the middle of the range, and we should make a scary trip down to 1820 which would be where I would make a stand, and buy aggressively.  Right now, I am not enthusiastic about building positions right at this level.  Sure we could just blast higher from here, considering how strong the market is, but I don't want to make that bet after a 3 week rally.

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