What an ugly way to end the day. The Nasdaq at one point was up to 2378 but ended at 2340. I continue to think the short side will be much more profitable here than the long side unless you are strictly trading intraday with tight stops. There has yet to be anything that proves that we are at a bottom and the only thing that looks like it will stop this fall is the 200 sma.
People continue to pound the tables saying that the selling is overdone and that we should be rallying. However, if you put things in perspective, this rally is just a blip (maybe slightly more) compared to rally in the fall. There is much more downside work to do.
My point is trends often go on longer than you expect them to. Right now the 50 sma of the Dow is turning downward, price has been weak day after day with people looking for any rise to get out on, and we have not found support yet. You can't call a bottom right here.
Until we do find support and there is evidence in the price action to show that things are turning themselves around (easier to make money buying than selling), I will continue to say hold off on buying.
Subscribe to:
Post Comments (Atom)
2 comments:
You're right. Look at the 50 turning downward. The averages may rally but they will be put in their place once they hit resistance.
Hey, nice to see i got a few people reading. Right now, the bounc is in full swing. But it'll be over soon and we should be right back down to where we started. Those ma lines are turning downward and that's not what any bull needs to see.
Post a Comment