…if this rally has any hopes of continuing. I still see enough positives to warrant a bounce and potentially another run at recent highs, however be smart and don’t¬†over-leverage¬†your accounts or the swings will be hard to deal with. Maybe one last gap down tomorrow before we head up.

2 Responses to “Bulls Need To Step Up Soon…”

  1. Hypnos Says:

    While you make some good arguments based on correlations and internals, I think it’s still an optimistic interpretation. We see a break below the trendline in QQQ and SPY, and in QQQ a lower high (right shoulder) as well as a break below the 50 day MA. The market general AAPL is leading this downward move.

    That said, how much risk to take short side is a matter of taste, and could be adjusted to your other considerations. Perhaps the best move right now is to be neutral.

  2. jeff pierce Says:

    very wise take. neutral is best for most people. if we see too much more downside I’ll be hedging my longs or exiting completely, but it’s important to not get scared out of one’s positions as of right now I’ve just given back last weeks gains.

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