The end of the year saw the markets see-saw back and fourth which caused some whipsaw action. On December 31st we had a very nice green day which flipped both the long and short signals. After losing some on the short position I went long near the end of the day. That proved to be a wise move as the fiscal cliff was resolved and the markets cheered it heavily.
Most of the ETF's we follow are overextended at this point so I'm expecting some consolidation or a pullback to occur over the next two days or so. You may want to take some profits off the table at the close today.
With some of our short term numbers reaching extreme this is one of the few times we can go against our indicators. If you're conservative stay clear of the market for a couple of days. If you're aggressive you can take a short in SOXL, TNA, TQQQ, NUGT or RUSL. Take profits in these shorts right away and set stops. The markets will be heading higher, so you don't want to get caught holding these shorts for very long.
No comments:
Post a Comment