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

Wednesday, June 2, 2010

Two Options

One is mildly bullish for the short term (next couple of days), and the other is based on alpha's expanding diagonal count which is immediately bearish. Like I said in my last post: There is a lot of debate about the current count (and with good reason). But I am still short. This move remains bearish until proven otherwise (I like 1140 as strong resistance and will revisit my stance only if that is broken).

It doesn't bother me that my positions go against me for the short term. I am set to catch unexpected and sharp drops. We had crazy no-bid days in P1 and you can bet we will have them out of the blue in P3. I stay short until the bulls convince me with overwhelming evidence that I am wrong. And the last couple of days are circumstantial at best :)

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