The most important part is about to be finalized the test of the 2002 lows. As we do that we have a daily 11 count today, if we close lower. The weekly count at 10 though might need 2 more weeks (lower closing weeks). We are trading about 150 points for the SPX below monthly Bollinger, so we have a low risk trade now as we can gain 20% to the upside and the downside might have 3% risk for now. It's definitely about time to start covering shorts and even for the bravehearts to start buying longs for a trading purpose only. When you ask what will trigger the upside - it is a synthetic short covering as long only managers sit on big cash these days and as soon as the redemption wave is through, which always happens at the lows - the Obama humongous aid program will start (that's an almost safe assumption), a temporary rally with lower rates by central banks in December is a given fact. Around 770 is a good point to start buying - but keep in mind that we will have some wild swings into December, as markets will build a severe low, that's the way it's done.
Thursday, November 20, 2008
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- getagrip
- I am a professional independent trader
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