If it was pure Fibonaccia, we would have failed earlier this week when we got to within .23 of my target of 3830 (not 3940), today, I believe we reconfirmed this support area by going down toward it, but not even kissing it, we had 8.35 to "spare". It is a combination of momentum indicators, sentiments, and boxing indicators (such as the Dow Diamond is a type of boxing indicator), some Fibonaccia, but only in measure and confirmatory, coupled with pure rationalization of what will be the next step of the "powers". The turnips are struggling to stay just a step ahead of those "powers", and some times the "powers" throw a nasty curve (retest of 3830 was not scheduled for today, only for July 14th or so, we may still get there).
In any event, I did not get back into either RMBS nor added JDSU, since they did not reach the targets set. With the selling I have done, I am back to 35% cash, and until I see that indeed 10300 and 3830 are not breached (today's action makes a breach aa higher probability), apart of daily raids (like on RMBS and AMD today), I'll wait for better proof that indeed the monster rally is coming.
Zeev |
