DJIM #20 2010
Monday, May 17, 2010 at 07:00AM At the end of it all last week, we’d have to say it was the ugliest 2% weekly broad market gains witnessed in our market history!. The ugly was the rejection of the 1170-1175SPX and the ensuing fast drop from late afternoon Thursday to Friday’s low in 1120’s. Somehow sanity may return next week, but wild swings will be the expectation going forward for the next little while. Possible positive catalysts are unclear. As noted before friday's open, with no conviction buyers at important highs or dip buyers at potential lows, we’ll also stay on this buyers strike as we have reason for our money to be ‘toyed/messed’ around the March ‘09 trendline. Well, by Friday’s close, we were well below this line and deep in Bear territory in the 1120’s. Now the “R’ is lowered to the trendline after we had a major rejection 1170-1175 with longs giving up and those who used the relief rally to book cash they thought they had lost in the plunge.
Instead of monkeying around to start the week, we’d prefer the market just go ahead early and test a gap formed early in the week 1113-1122 and/or even 1100 (200ma). Anyways, the market has holes in it and we don’t want to fall into one of them, so patiently we’ll wait it out on the sidelines to begin the week. We're not about to follow in the footsteps of the big boys..
http://www.ft.com/cms/s/0/909e6634-6112-11df-9bf0-00144feab49a.html
If you need to press the trigger at any point and there's no room at your local Traders Anonymous meetings, it is likely index ETF’s would be the best way to go as individual stock picking will be difficult with no clear rotation/ sector bias seen.