Robert,
Posted this on the Kahuna thread:
My very long term bearish position that the S&P will trade back in the 15-20 range within 5 years still stands, but the bullishness we are seeing today is quite convincing.
The NEW HIGHs/LOWs have improved significantly, enough for me to turn mid-term bullish if that continues.
So until the FOMC meeting its BULL-TIME. After the outcome of the FOMC meeting we will then have a better idea if this rally will continue, but until then I would be cautious on shorting unless one is very nimble.
Im A BULL - for the mid-term(5-30 days)
I now have CLASS 1 SELL signals on most of the major indices, so Im expecting a short-term top/breather on MONDAY, and could start as early as today. I am expecting that the forthcoming dip to be small and an opportunity to trade long. If this upswing continues right up to the FOMC MEETING on NOV 16, then it may be a good shorting opportunity, but untill then there could be a retest of the highs in the SPX/DOW or even new highs.
Again my very long-term view still remains intact, but we still need to identify the intermediate trends and for now its up.
I am still seeing evidence of SECTOR ROTATION, so the anomoly still exists and will still need to be corrected down the road but for now its up.
As for the DOT, it is now retesting the previous highs, but has not broken thru yet, so Im not convinced yet that the DOT will be a HOT SECTOR. If it continues up, then thats another story.
Im suspecting that we could see more upside in the RLX/TRAN/SOX.
seeya
seeya |
