If you were going to unload a large position of securities, would you tell the world about it in advance? The widely applauded report that Chinese officials said they would not abandon European junk securities should not be taken seriously. (Thanks to my friend, Judy, for these insights.) Meanwhile, we finally got a real bounce. Time will tell if this rise will be sustained long enough to turn my indicators positive. This is a good time to sit back and watch the action from a distance.
Month: May 2010
General Market Indicators remain at zero.
Wednesday was the 16th day of the QQQQ short term down-trend. The Worden T2108 Indicator is still in oversold territory.
Bounce again? NFLX and GLD ready to rally?
We may get a real bounce now. While everyone thinks we have just had a correction, I am concerned that we could get a brief rally that fails and completes a major top. So I remain skeptical until the the market reveals its true trend. If this bounce holds for a while, I would watch NFLX carefully because it has held up very well during the decline. Gold mining stocks and GLD also look like they may be ready to rally. They keep coming up in my bounce from oversold scan.