I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Tuesday, December 8, 2009

Small Potatoes

I still think we are in Minor C up, last wave up in P2 and think will still get a "minor" (and Minor, I suppose) rally. But I will reiterate what I said here (Dust, Wind... Dude):

Could we be going higher? Might we have topped? ... Maybe to both for the short term. And for the day traders and the swing traders (and I am in the former camp) these are important questions.

But medium term and long term, the landscape is about to dramatically change. Longer term swing traders and investors (and I belong to both these camps too) need to step back and look at the big picture.

And the big picture is, we are very near the top of P2. So all of the nickel and dime stuff is small potatoes in comparison to the larger wave that's coming. Trying to milk the last few points out of P2 from the long side is not really what I am interested in. Getting positioned for the start of P3 is.

If you are long, stay cautious. Because this is what I believe is coming up next:

blog comments powered by Disqus