Wednesday, March 7, 2012

03-07-2012 outlook

Looked at some of the stock market blogs.  Seems several are talking about a substantial sell off (1200, 1100, 1000, and lower.  Now maybe they will be right (eventually), but it appears to me we set a bottom for the quarter Wall cycle (25TDs) yesterday.  We now have a substantial gap down that makes a target to be filled as the Quarter Wall cycle turns up.  So maybe we get the sell off many are calling for, but it is not going to be straight down.  I think we take the next 12 or so TDs repairing the damage from yesterday before we continue down (turn around Mar 19-20).

Here is an updated chart for SPX:
Given this outlook I cashed in 1/2 my RWM position yesterday for a 2+% profit.  I will look to buy more RWM down near $27.  GL traders.