Tuesday, August 6, 2013

08/06/13: Still looking for a higher high

Markets were significantly oversold today on a relative basis.  What this means is if we do achieve a lower low, this will set up a significant positive divergence that could be the springboard to higher highs.

Secondly, today we have a "positive reversal."  The CCIs on all timeframes were significantly oversold relative to the most recent CCI low however price is making a higher low.  This means that the sell off was not strong enough to drive price lower, and bears did not get the job done.

This setup is very prone to a short squeeze.  It could be last leg of this particular wave.

Still holding UPRO but today really put a damper since I bought at the close yesterday and today we had a gap down and a drive lower.

Again, still looking for a higher high.

No comments:

Post a Comment