Monday, October 14, 2013

10/14/13: Switched to short, looking for 1670s

Markets gapped down at the timing window (green line) which was different from what I expected.  If it was a high, I would have shorted but instead markets gapped down so I had no choice but to buy some more SPX.

Towards the end of the day, we started sporting some negative divs on the hourly so took off longs and switched to small short.  Currently STILL looking for a retrace back to 1670 area.

If this rally is for real, we need to see a test of support.  So far, this rally has just gone up in one straight line without a true test of broken resistance.  Rallies like these are very "suspect" and we could potentially label this as a wave B rather than the start of a new rally.

So while I hope / expect new highs, I am open to the idea that this may in fact just be some false "B" rally.  Again, need to see some testing of support otherwise hard to trust.

No comments:

Post a Comment