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With every chance to see a major move lower this morning, the opening gap down was actually bought. 1141 proved to be the first line in the sand where bulls were willing to stick their necks out to prevent another down 3% type of day across the indices. As I write this, the bears are giving the market another shot at taking us down. As you now, the best position for swing traders is still cash, as boring as that sounds. There are a few names on my watch list that are green such, as CBOE KLAC REXX VHC. Nonetheless, it feels like I would be risking many dollars for just a few pennies on the long side at this point for swings. Similarly, the short side carries too much risk of whipsaw, such as this morning.
Finally, another reason to hold off on swings here is that we remain inside the choppy consolidation zone of the past month. The rising channel did not give way to this morning’s pressure, which serves as an initial downside rejection. Hence, you are going to have to be mentally prepared for any outcome.
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QE3 coming … soon … all we need is another 100 or so shaved off SPY
Wonder where Bernanke is watching on S&P 500
good call still cash. but im worried about the dollar too. any thoughts on this? if we get trade wars what happens?
Dollar could easily scream much higher. Question is, does inverse relationship with risk assets still persist if that happens?
well if china sees this as risk to there economy, then what?
then what? they will send those little chicks with those assault rifles and make amelikans pay. thats after the pillow fight