Thursday, January 23, 2014

Weekly Report

Not much has happened since the middle of December, which could mean a couple of things.

  1. The market is taking a breather before heading higher.
  2. The market has run out of steam and will begin its retreat after earnings season.
I'm going with #2.  I don't think there's enough gas left in the tank to take us much higher at this time.  I feel a correction is around the corner and I'm getting prepared for it.  

Stocks above their 50MA has held steady since December 23rd, while stocks above their 20MA has been falling since the beginning of the new year.  I'll be keeping a close eye on these two and if the 50MA breaks lower, get ready for some drama.  

Stocks go down much faster than they go up.  

I'm in FAZ and DRV, both bear stocks.  Anything can happen, so if I notice a change I'll quickly get long... although, that's not what I believe will occur. 

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