A large opening gap this morning had held thus far, with assorted short squeezes taking place across the market. There are plenty of reasons to doubt this rally, such as today being merely a false summer Friday move. However, the bulls have taken a strong first step in the right direction as far as seeking to confirm the myriad of hammer candlesticks printed on yesterday’s index daily charts.
While there are plenty of charts that still need to firm up, there are potent areas of the market such as the homebuilders. In addition to the impressive XHB ETF daily chart below of the sector, be sure to read this post that I wrote earlier in the week with some specific trading idea.
I am still sticking to my plan of patiently layering into quality charts on the long side as the market slowly improves. Rushing in and out of this market has been a great way to chop up both your portfolio and confidence this summer, and I am pleased that 12631 members have by and large avoided that mess. If we are truly at a major inflection point, then by definition there will be time to become more aggressive and increase exposure. In the meantime, the bulls have made some slight progress but have plenty more work to do, starting with recapturing 2,900 on the Nasdaq Composite Index.
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“If we are truly at a major inflection point, then by definition there will be time to become more aggressive and increase exposure.”
Thats the truth, Truth
Thanks
That picture is so wrong on so many levels… lol
I’ve posted far worse ones….
LMAO that pic is hilarious. Chess, when you’re being so patient, does the devil (not CB’s devil) whisper sweet nothings in your ear like “Chess, you’ve got the gift. Go long and strong. Just a quick 20% position for like TWO DAYS. You know the future, trust me”
@Dirk: Thanks. I have tamed the devil over the years.
that pic is amazing, i might have to steal that kids idea this halloween.