Tuesday, February 17, 2009

02.17.09 - No Reason to Be Long

At Friday's close, I started to see some long swing trade signals set up. However, the long weekend's Asia trade was a strong clue to wait it out for today's open. While some research indicates a good edge towards fading bear gaps down, as of right now we are seeing no evidence supporting that trade intraday. In fact, the Advance-Decline line is so squashed, I can't even see it on my charts! (Cyan line in bottom pane). Note that this could change quickly with price in as narrow a range as it has been. With the VIX pushing 50 yet again, anyway you look at it these bear market retests are scary indeed for the fully invested.

Last 20-Minutes Sector Chart

Consumer Staples (XLP) "relative winner."


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