Monday, April 27, 2009
A new trend forming?
Click for a larger image.
Funny thing, now that I've finally convinced myself that we are in a bullish market, the SPY may well be falling out. Yesterday was a lower high and today was even lower.
Not enough evidence to call it a downtrend, since the lows are higher, but, we may be on to something here: the market is definitely less interested in moving up.
If it is the beginnings of a several day downtrend, I can proudly say that I got in on the peak. I am carrying a small position in FAZ overnight. So far so good! At the close of today's trading, the market internals were mixed, but in my favor and my investment is currently up better than 2%.
I am actually looking for an SPY pull-back to about $78 which could take a week or possibly even two. That would make my FAZ trade well worthwhile, and then make the longer-term bull rally more powerful.
OBTW: I really couldn't find any satisfactory fundamentals in the $CYC index (see my post below) so I'll happily return focus to my list of short interest stocks once the bulls take over again.
Posted by congamike at 5:59 PM