Markets did a nicely little pullback day on monday after markets went up rallied 2% on Friday. A slow pullback down to -0.5 to -1% is very healthy for markets before another major rally higher.
I remain in the bullish camp as I see such a sideways triangle or movement in markets like we had last weeks as bullish when you think about markets rallied from October lows to end of October highs. Usually this is a bullish sign as markets trying to get rid of very overbought conditions on a near sideways manner, before breaking out higher.
If we breakdown below ths trendline next days , would be more bearish indications , but for now I stand by my call that I think we are about to see a major rally into year end - the santa rally...
So if you asked me if I'm bearish or bullish well then I'm bullish and therefore I bought a SWING trade long in TNA on the pullback yesterday at 45$.
Conclusion:
Got long TNA for a swing trade at 45$ on the pullback I remain bullish as long SPX hold the lower trendline which is 1230 on SPX area. Until then I think we could be about to see a major "santa rally" and by looking at the Italian index and others , we may get a lot higher from here.
TBT got a little pullback but hopefully this one will pick up speed to the upside again from those levels. We may very well get a little gap down in the morning , but nothing big imho and from there we could see a reversal and rally higher.
Well so much for the bullish theory.
ReplyDeleteThe Euro disaster zone is going to pull the rest of the world down with it.
This has and will go down as the biggest bull trap in history.
Eurozone bond yields are signalling disaster!
The close today was bearish. I think too early to go long.
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