Monday, November 1, 2010

Selling On Strength


Hope you guys are starting to see a pattern here? SELLING ON STRENGTH is starting to get more and more obvious now. Indexes are starting to look top heavy here. Been urging all cash for almost a week now and for aggressive trader shorting some names here might not be a bad idea. "Under the surface", the action does not support the bulls short term. We are due for a deeper correction that could take us lower by 3-5% from current levels and could last a few weeks.

2 comments:

  1. Stewie,

    Last Monday and today look like a possible double-top. Volume in the index ETF's was strong today, too.

    What do you think of possibility we're in an Ascending Triangle instead of reversal? I figure this whole move up has defied gravity while spitting at the sun, so why stop now?

    Just a thought. But, I'm bearish, myself.

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  2. HI Cliffy,

    To me, what is most troubling for the bulls case(short term) as i am longer term bullish: Short term we are in need or already in the process of a pullback phase right here. The reason i say is because i am seeing less and less quality setups/bases to support a sustained bullish leg.

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