<,Robet, don't get too overconfident.....If we break 8200, then and then alone have the technicals failed>>
Mark, surely you realize that this statement is nonsensical. I also don't think the tone is proper. Being confident is one thing, knowing it all another. No one knows it all, I can guarantee you ask any good trader and they will tell you they learn every day. I do that's for sure.
As for the market:
We are obviously in a trading range.
Dow is putting in higher lows and highs, and closed over 21 day. Higher high today and thru resistance.
NASD closed right at 21 day, and right at resist. Will likely gap thru tomorrow.
S & Ps acting well and close to new high, and clearly uptrending as well, with higher high today.
Market is showing clear signs of bottoming action over the last few days
If you want to short, you short at the top on failure to break to highs or at or near resistance
But to be short in this market at this time seems awfully dangerous, especially where there is little supply for sale, thus stocks are flying on light volume.
The jan effect could add further fuel to the rally.
The psychology of the market is the main reason why many fine stocks have tanked and is 90% of the game. Do you think SEBL, CHKPF WAXS OSTE ORBKF MCRL and others are making huge moves for any other reason than the psychology is changing? When the market is acting weak, there are no buyers and the mm's head for the hills. The shorts are all ganging up on every uptick. Thus the stocks drift down. When the buyers appear, these stocks are rocket ships. Shorts are notoriously quick on the trigger. Bottom line, we are in a bull market, and the trend is up. fighting the trend is painful. Sure you can make money both ways, but the short end has been a sure way to go bust in this decade.
Good luck. |
