Simple. The market will crash on failed bullish patterns. Believe me, the market won’t crash when everyone expects it. The market will crash when the majority is unprepared and complacent. The break above October 2011 highs on the SPX would be bullish and a failure could precipitate a crash.
I personally hold many ill thoughts towards the market and I have to constantly remind myself that, my ill thoughts mean nothing. I have participated simply because the market looked good, but a failed break above 1,292 would only add to my bearish thoughts. I’m getting close to throwing my stupid long positions out the window. They are serving me extremely well, yet I can’t help but sense weakness.
Once again, I find myself watching those garbage Canadian banks. If RY were to break below $50, it would most certainly head towards zero(or at least the 30’s). Making me outstanding profits in the process. I will be watching them closely, for a short position. This depends on price action obviously, not some crazy theory I have about the Canadian housing market crashing.
As for long positions, I’ve been watching NFLX closely for a long above $99. I’ve also been keeping a close eye on RIMM. While I missed my buy point on RIMM, I will be taking a position on strength. I’m watching many stocks for breaks higher, but those are the mentionable ones.
As always, I will trade with the tape and distrust thoughts from everyone, including my own.
http://www.youtube.com/watch?v=M4Bx7R0LKx0
