What do you think? The fundamentals and charts are telling me one thing, but the frenzy is telling me another. My opinion is that its just like we were back in April. Interest rates moving higher, oil moving higher and then splat. Nazz secretly turning and the S&P will soon follow... Should I drop my bearishness or join in with the frenzy? Are we going to see a correction similiar to the one in May? Are we going to see a waterfall selloff and panic messages on ET? Its your turn, lets talk strategy for Weds, but also January. So goes January, so goes the rest of the year...
No no no. We are not making predictions, we are making strategy or as Bush says it, strategery. I've drawn my charts and made my action plan. There is no downtrend on the S&P, but there is a trend on the Nazzzz that is a telling sign. The TXN looks to tick higher and the magic number is 5 when we might see a reversal. The high amount of bullishness is a contrary indicator to myself as Kings are made in the bearish of markets not the bullish kind... The magic charts say there is no bottom in the housing market until the bottom and uptrend in the starts and permits. A few other indicators I use. I would stay away from home builders right now. Its a dead cat bounce.
There you go now. I think the Naz is going to turn much lower as well. This weeks trend is what I am going to feel out on the chart. The naz has to bounce back up for me to feel confident again. No problem with the S&P YET. Strong showing overseas as if it were 1999.