Monday, September 14, 2009

Minor setback today

Here is today's hourly SPY broad market ETF.
Notice the trendline I have drawn in.

Click for larger, browser back.

This morning, we gapped down below the line and some in the FTV chat room were talking doom and gloom. I kept track of the market internals while sitting on my hands. As I watched the NYSE up and down volume charts, I noticed that some stocks were becoming interesting. With all the discipline I could muster, I only bought (went long in) four of them.

The "buy the dips" strategy has worked many times recently, and according to the internals, it was the right thing to do. As it turns out, Price has improved and I was properly in synch with the markets (see post below).

The SPY daily chart still indicates upward strength and I am enjoying the ride.

We did get a pull-back on the weekly chart, eight candles ago, so this can not be expected to run many more weeks. When the next dip occurs, I hope that I'll be ready -- I am watching for it.

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