Wednesday, December 1, 2010

Today's Breakout

Update: Financials and real estate are not really confirming today's up move, so while the markets could continue higher, this is not an extremely bullish setup, certainly not as bullish as it appears at this time. My DRV position is practically up on the day.

It looks pretty clean. Not much to argue with, and the odds predicted an up day today. I'm not necessarily turning bullish until I see the close and the odds, as well as a definitive break above 1200. I still believe the Dow has correctly predicted a break below 1170 (eventually) but it's been known to take some time, and at times some rather large draw downs trading it. So I will wait for the close to put on a hedge, or if today's gap fills. The market still doesn't look like the up trend that started in September is over, so it's possible they will take this up to new highs around the measured target of 1242. Shorts should prepare for that possibility.

No comments:

Post a Comment