from a bigger picture perspective. It is clear we have hit some
kind of bottom and that usually means some kind of seller
exhaustion. I would not short now unless you are hedging some
longs. I am long and have been for a week and I have my stop below
the clear bottom on the SPX. Seems pretty low risk to me.
good call off the low and there were good reasons for a bounce
there not the least of which was the fakeout break of the 200ma.
But this looks to me like there's plenty of reasons to stall and be
a choppy mess for a while
Posted by frtaylor on 11th of Jun 2012 at 12:11 pm
Right - I think a second time through Matt's newsletter is in
order. Certainly SPX last week broke through the bull wedge
that had formed on the daily. So a pullback would be just
that, and could easily play out in an inv H/S as Matt has laid out.
I'm not heavily short right now, and I have reasonably tight
stops on my shorts (VR, VRSK, GDX, PKI), and I'm not counting on a
new bottom although it would not surprise me.
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I think you need to step back and look at the chart
5 min SPX
Posted by tomW1 on 11th of Jun 2012 at 12:03 pm
from a bigger picture perspective. It is clear we have hit some kind of bottom and that usually means some kind of seller exhaustion. I would not short now unless you are hedging some longs. I am long and have been for a week and I have my stop below the clear bottom on the SPX. Seems pretty low risk to me.
SPY 60 min
Posted by bkout3 on 11th of Jun 2012 at 12:12 pm
good call off the low and there were good reasons for a bounce there not the least of which was the fakeout break of the 200ma. But this looks to me like there's plenty of reasons to stall and be a choppy mess for a while
Right - I think a
Posted by frtaylor on 11th of Jun 2012 at 12:11 pm
Right - I think a second time through Matt's newsletter is in order. Certainly SPX last week broke through the bull wedge that had formed on the daily. So a pullback would be just that, and could easily play out in an inv H/S as Matt has laid out. I'm not heavily short right now, and I have reasonably tight stops on my shorts (VR, VRSK, GDX, PKI), and I'm not counting on a new bottom although it would not surprise me.