Daily market Review 2/27/2013

The market did not fail to surprise today.  Volume was lower than average, but the price action was certainly positive.  Many charts are offering excellent opportunities to get involved with clear definition of risk, if we have finished with the correction, and the next leg higher is about to begin.  Understand that at the moment, we need proof that a move higher is coming next, until then, who knows.


Good Call Indeed 2/25/2013

Ugly day in the market if you are a long only investor.

The SH hedge I carried over the weekend was sold towards the close just in case we get a gap higher after the major selloff we had today.  Not expecting much more than a relief bounce or perhaps a test of the 1500 SPX level which is now resistance.

If you used stops, today some were most likely hit.

Stay in sync with the trend and you will not be bothered by days like today.

Futures Are Higher This AM 2/25/2013

SPX futures are surprisingly strong this AM.

Surprising only because the SPX will be opening right at the top of the Bollinger Band on the daily SPX chart.

Simply put, I am starting the day with a bias for a net selling day in the markets.  If we challenge, and exceed recent highs in the SPX during the course of the day’s action, I will close my short hedges and add to the longs that are working.

Check back later to see how this strategy works out.

Just a bounce?

Hard to tell if today was anything more than just a relief bounce after all the selling we had this week.  I put on a SH position at the close of trading today.  I have exposure to long positions, and the SH will serve to protect against a gap down open Monday morning.  If we get more selling on Monday, my stops are in place to limit the downside risk.

Check back this weekend for a series of videos analyzing the market situation and some strategy for the coming week.


The Selling Continues 2/21/2012

Remember last week when we were wondering if the market would ever correct?  Well, it certainly has.

The wise investor is making sure that positions are protected and that profits do not turn into losses.  Starting new positions with the uptrend having been damaged is a poor risk/reward proposition.

Expecting a bounce in the AM, I closed my SH position today, but may re-enter the SH if the bounce does not materialize or is particularly weak.