I know, it's pretty late posting this one, so I'll make it a quickie. I'm not liking the way the market's acting. The bounce continued today...sort of...and it wasn't very vigourous at all. The thought is entering into my head that maybe it is different this time and the pullback won't yield one of those V-shaped bounces we've all become so used to over the past nine or so months. The volume was big last week on the selloff and it's pretty small so far this week on the bounce, which is a classic tell of a dead-cat bounce. This could be associated with the fact that the Fed is due to announce its decision tomorrow, along with Apple and their iTablet or whatever it will be, and then we have Obama's State of the Union tomorrow night. The market is extremely fragile right now, to say the least.
I'm not putting up a pick tonight, either. However, I'm more inclined to get short rather than long at this point, pretty much across the board. That being said, I'm not going to sell what I just bought last week in the 401k, at least not yet. The anticipation for the potential of more downside is the reason I moved small there, leaving plenty of room to add should we fall further. Note that I would have added to my 401k position in my employer, United Technologies today, as it dipped below its 50-day EMA, but I didn't because UTX reports earnings Wednesday morning before the open.
Position: long UTX
Disclaimer: This is not a recommendation and is presented for informational purposes only.
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