Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.




While trading is clearly not my strength, I want to reinforce that this is an environment where one has to be very careful trading off the obvious. There have been a number of breakouts and breakdowns and everything in between over the course of this bear market.

The catalyst to be a buyer late last week was that the market was moving toward oversold and was near trading range support. That reason has been eliminated. Does the market just tank then after the opening? I would argue maybe not because too many expect a significant bounce once anything happens or is resolved in Iraq meaning aggressive shorts may not want to be exposed to a potential spike higher and therefore may not press the downside.

The technical backdrop should be used as a piece of the puzzle, not the whole story. The whole picture suggests staying out of the way because of the technicals I outlined earlier vs. shorting or selling aggressively into a size down tape.

If the market was to open flat, the story would be different - but it is set to open down big.

< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos