Monday, May 24, 2010


What happened to the guaranteed Monday rally? And importance of Friday's so-called reversal? or the big oversold condition, doesn't that all guarantee a rally? a LOW?
When you have the boxes duking it out, who knows!
My premise I have been asking you to consider is the vote is cast by the shares bought and sold, that translates into the direction and strength of the different moving averages (short term and longer term like the 50 and 200 vs 5 or 20).
The direction of the moving averages help determine trend. If you are TRADING you want to ride the trend. If you are INVESTING it is nice to know what kind of market you are in....bull or bear.
Diversified portfolio.....yeah yeah......sometimes no place to hide. BONDS have been RED HOT.....yield curve collapsing......bonds are warning of DEFLATION IMHO.
I have drawn 2 trend lines, these are near term areas to be watching any break there look out.
We are beginning to spend some time UNDER the 200 EMA, I find that troubling.
I find troubling inane CNN articles heading "ARE WE IN A NEW BEAR MARKET?" only to find bullish opinion written, a JOKE.....why not call it the bull still lives why worry?

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