Monday, November 19, 2007

Expecting a shortable bounce

I'm still waiting for that bounce back up to the 50 day moving average. The longer we just hover above the August low bar, the more it worries me that we are just building strength to get even lower.

I was listening to Ken Shrieve today and he was talking about how every correction this year took place without the leaders taking big hits. Now, during this correction, Apple, Rimm, and Google are all taking it on the chin. That is worrisome. I'm also very concerned over the complacency I sense out there. No one is panicking. Here we are near the August lows and I hear some whimpers, but no yelling, kicking and screaming.

Right now, my thesis is to wait for a bounce and then get short. I have devised a brand new oscillator that has been backtesting very well for short entries. I can't wait to give it a try.

No comments: