Over the last 5 trading session on the Nasdaq we’ve had 4 distribution days (volume on down days exceeded the previous day). I posted a chart on Aug. 5th, and stated that if this rally if going to move forward, it would have to bust through the trendline of the lower highs I had drawn. I believe what we are seeing is a top being put in from what has been one of the great bear market rallies of all time. Yes it could still turn around and move higher, but some of my other proprietary indicators are starting to roll over and at the very least a 10-15% correction should be on it’s way. Being long from here on out could be a liability and opening new positions is out of the question.

NASD

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2 Responses to “Short The Rallies”

  1. Lioncub Says:

    Astrologically, i am seeing that, on Thursday and Friday, there should be a BIG drop in financials but Gold might be shooting up.
    I believe, Fed might not be increasing interest rates from current levels and as a result:
    a) That would indicate that we are not there yet for the true recovery of our economy.
    b) There is going to be inflation for keeping the same low interests.
    Is that something what might happen?
    BTW, the correction will go on until 8/26 and then a brief up move followed by a scary drop.

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