Wednesday, February 23, 2011

comments amd outlook for 2-24

If you follow my posts regularly you know I turned bearish about 2 weeks ago.  Now I was early, but I wanted to be sure I provided ample time  for people to make adjustments (tighten stops, trim positions).  We got some follow through  today on yesterday's substantial sell off.  So this is developing the feel of something more than a 1-2 day correction.  Time will tell.  What we can be sure of is the market supporters (IE the Bernank) won't give up without a fight.  So this is apt to be 2-3 days down and 1 day up over the next 4-8 weeks.  It may be totally frustrating at times.  But, recognize it for what it is and don't be too quick to buy dips and when you buy look at areas that can benefit  (IE energy related ETFS) from the environment.

Tonite I will not focus on the  very short cycles as they lack the amplitude to overcome the general trend IMO.  But we will look at the short cycles.  We have one bottoming and one that will top and turn down (probably Friday).  Here is a chart:

Gl traders.  IMO the bias is now down, but we should not be surprised if tomorrow or Friday is up.  Do your own analysis please.

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