Definitely pays to be nimble! Huge days down like today provided some nice swings in both directions.
High probability for more downside tomorrow. The Bullish/Bearish hedge fund model is now updated, daily signals on most stocks/sectors now pointing down. The size of today's pullback was a little surprising, but that is the trading environment we are in. The Euro news shocks can cause big drops overnight, giving a gap and go scenario.
Chances are that quantitative easing will continue causing the markets to rise and that this is just a pullback. Nonetheless, many longs were trapped and late coming shorts could keep the market down tomorrow. Momentum is down and there's no reason to fight it. The Euro zone is a mess, but like today, it is mainly old news causing the shocks. Italian bond spreads have been on a rise for quite a while.
Tomorrow, looking short financials and short Aussie and Euro currencies.
No comments:
Post a Comment