Tuesday, May 5, 2009

05.05.09 - Running Sideways

Price has been running sideways with a negative bias beneath the VWAP. The preponderance of tick readings have been negative, though not disturbingly so. Volume is higher today, so trends have been easier to read. Last night we had as many overbought readings on the ETF Rewind as I can recall seeing. As many have pointed out, this is not uncommon in a bullish environment, but we're talking majorly short-term overbought by traditional measures. At the very least, it will be interesting to see how the markets digest recent gains in the days ahead. As for me, I am trading very conservatively with a short-side bias for now.

Reading: Quantifiable Edges/ Historic Breadth

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