Actually, I just took a light short moments ago, and I'll add if we rally today... what made me decide to move to flat from long last night was the chart patterns... while the longer term chart pattern right now still looks very bullish, the more near term picture is not so good, these markets are very over bought and i don't know what kind of sustainable rally they could muster right now without a healthy correction... also, August, September, and October are the three most bearish seasonal months for these markets, and since we're already entering the mid July period, August is only a few weeks away... if these markets can't muster a rally right, then we could see a sell signal soon enough...
Also, I should mention, since we did rally well above that cluster of many VPs and held there, it gave the appearance that these markets will still continue higher... BUT, now that the market readjusted and is again below that cluster, I think holding my longs any further would be a mistake... buying higher was justifiable based on the market holding well above that cluster, but this is no longer the case... of course, as always, I could be wrong, but that's how I'm playing...
GZ |
