The collision of global markets and social mood

Friday, February 22, 2013

Journalist Traders

The headline on Marketwatch this morning said Futures Signal Buyers May Ease Back In. Trading is so easy even a journalist can do it.

Easing back in sounds like a complacent attitude. The right trade is usually a little scary. Even though I'm still on the lookout for a three-legged decline and eventual new highs, I do not feel that THE buy is here yet.

Yesterday was "a" buy. And I bought it. But I will sell it today. I view the sharp decline as wave A. Today's rally could be wave B up. A bounce into 1510-1518 would be perfect. Then a wave C could plumb for 1475 or lower.

However, since 1495.02 held, there is the possibility that enough buyers could ease in to create another sideways triangle before a final thrust toward 1550+. In this case the journalists would be safe. And correct. The question is, for how long?

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