Talk about being whipsawed. Now the RelativeStrength indicators both daily and 60 minute are pointing up. I probably should bail on all shorts and switch to long, but the market seems so overbought, the SnP stopped just above the 1160 target, which is also slightly above the 100% fib projection ... well maybe more than slightly, next projection would be 1202 ..hmmmm. The RUT just slightly exceeded the 61.8% fib retracement and at some resistance 690 area. ??? Geez, confusing as to bail or look for a pullback from here. TZA has broken down to new lows. the ETFs drop way faster than they go up. While Rut high this year was 746 and its now 689!! and TZA at all time low?? Whats up with that?
Plus all the LRCs for 20 min, 60 min and daily... are all pointing up. Should I jump on board the bull train at these lofty highs or just stand aside after closing all loser shorts?? This market is incredibly difficult to figure. Its all about the Fed pumping cash into the economy with its POMO. Why can't they just leave the markets to find their own balance?
Tuesday, October 5, 2010
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Actually looking at the daily RSI on SnP.. its not yet overbought. still has quite a ways to go. gulp. :(
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