Red Monday

01Dec08

When I said that I expected the week to start out with a bearish bias, I didn’t mean THAT.

If ever there was a market to prove the old adage “don’t fight the broader trend”, this is it.

It was nice to be short on the day (YK was 2X short for an almost 20% gain, MarketSci was 100% cash), but I say that with total humbleness – I’m still climbing out of my drawdown after an ugly October.

Looking forward, SOTM intermediate and long-term indicators are still bearish, but short-term indicators are pointing to a bounce. Net affect? Neutral to very slightly bullish for Tuesday. Having said that, the SOTM indicators aren’t geared towards extreme market moves like this, so I would look to more targeted analysis from the likes of folks like Quantifiable Edges to confirm my play for Tuesday.

Be careful out there.

Happy trading,
ms

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