Thursday, January 28, 2010

Market Update

I am about to leave for Houston and will be gone until Sunday. Attending a business auction. Don't know if there will be anything to do there or not. For those curious about my letter, I plan to email it out on Sunday. Due diligence on investments is putting me back some.

The market hit its 1105 plues level, it just did it in the futures market around midnight. If you were like any normal person, you missed it.

I was able to dribble out of some longs at the open but the market really never gave a great chance to go all in. As a result, the potential for a great setup was stolen from us. Now we are in no man's land. Bounced off the very depth of resistance again, 1080 but made a new closing low.

Where we go from here is anyone's guess. Like I said, unless you were up at midnight and trading futures the chance to get short the market like i was salivating over never materialized. A big rally tomorrow will give you that chance again but not sure it will materialize. A decent break below 1080 would be very bearish. In general though, fundamentally it is all bearish. What is being talked about is just trying to figure out the timing of entry points and trying to determine the probability that momentum is for sure proken in a way that ensures no new highs are coming.

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