|Written by L.A. Little|
|Friday, 24 August 2007 09:25|
Technical analysis literature will pretty uniformly suggest that you short into a market that has taken a big drop and V bottoms back higher on lower and lower volume. Today volume was absolutely pathetic yet it really didn't matter as the inability for any selling to gain traction led to more and more gains. The sellers simply walked away leaving the remaining shorts in a conundrum of having to cover or absorb losses.
Do you realize we are something like 3.5% off of all time highs again? Absolutely unheard of but the past 9 months have been full of this type of action.
I'm rather dejected and disgusted as the tried and true trades just are not working but that's the summer and we should realize that on a given day anything can happen; especially when volume is so thin. I realized there's is a contingent of bears now and I respect that, but a V bottom; that's really hard to swallow. The issues are so thick you can cut them with a knife. Next week will likely be more informative. We are heading into the heart of resistance now. Just look at the numbers. We came down on 3.5B shares and we go back up on 1.5B. That just doesn't add up. If they can carry this market higher next week without the pullback I'm looking for, then more power to them as they are definitely smarter than I. I'll believe it when I see it though.
Well, at least it's Friday and we can turn out attention to the weekend. Have a good one and as always, hug a friend and spread some love to your family members and remember to focus on your future; conceptualize it then actualize it. You have the power to change things ... and you can do it. Take care. See you next week.
|Last Updated on Friday, 24 August 2007 16:18|