Tuesday, July 14, 2009

Market at Pivotal Point

When I first mentioned (weeks ago) that many chart patterns were starting to look like they were forming potential Head & Shoulders patterns - I hadn't seen them mentioned by anyone. I was really feeling good about getting short. Fast forward to a week ago, and you can not escape EVERYONE talking about these H&S setups. With so many people watching the same thing, can shorting the indexes possibly work out? For now, I think not, and am mostly long the market again (albeit I go long and short on a daily trading basis).

Regardless of what I think today, I can not help but feel like we are currently in 'no-mans land', with no clear market direction in my sights. So what am I watching as my market tell? Not Goldman Sachs earnings, not even Intels earnings (which I believe will be taken positively). I am watching Oil as my market tell. If Oil closes difinatively under $60, I believe we will have more downside in the market, and will likely get heavily short again. Should oil close over $62 I think the bulls will be back in control.

2 comments:

  1. Can you come up with new posts on the same topic. I want to know your views on the current market situation of oil prices and stocks.
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  2. First of all let me tell you, you have got a great blog. I am interested in looking for more of such topics and would like to have further information. Hope to see the next blog soon. Commodity Tips Equity Tips

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