Happy Groundhog Day. The critter saw his darn shadow today, so six more weeks of winter. Boo. Maybe the forecast helped the market today because the market rallied again today. Who knows? Since the market seems to be tied to oil, maybe the forecast for more winter propped oil. I have no idea, but the rally continued. Volume was mixed compared to yesterday, lower on some indices and higher on others. We'll have to see if the rally continues, as we're now approaching resistance at several 50-day EMAs. The bears are in charge until we've reclaimed those levels. We saw a lot of this in the second half of 2009. Whenever the market was on the brink of technical breakdown, the bulls saved the day and powered higher. Conventional technical analysis says these V-shaped bounces should not be trusted, but the pattern established over the past six months says otherwise. In essence, the exception has now become the rule unless proven otherwise.
No trades today in any account.
Again, I'm liking what I see in CBI on the long side. I'm also liking EME holding support like it has. This one is looking worthy of a nibble on the long side for a starter. IACI and SPAR are looking good, too.
On the short side, EJ's rallying a bit for me, and I'm liking that. Same with TSL. These are the lowest-risk short setups right now.
Position: Long CBI
Disclaimer: This is not a recommendation and is presented for informational purposes only.
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