Wednesday, November 9, 2011

Bias and Commentary

This Saturday, I wrote "One can expect prices to continue forming a top around the 200 day moving average before the next leg down." Yesterday, prices once again hit the 200 day and now the S&P opened down 30 points. This choppy trading is a topping formation. If this thesis is correct--and evidence is mounting--the 1290 area will be the next "lower high" in a bear market, and a break below 1070 is the next significant move.

Today's bias at 9:45 AM, is negative, suggesting sell the rallies intraday.


  1. You may be right. The 200 is proving tough, and this is a bear market. Those two things are certain.

    BTW, as planned, I closed shorts and went long today.

  2. I exit longs today.

    As my grandmama's sister's oldest grandnephew used to say, "When the market slaps you in the face, you better listen, boy."