Tuesday, July 21, 2009

Wave 2 in Latter Stages; July 21, 2009

I haven't posted much because no opportunities have presented themselves until today. The straight line rally from last week should be finalizing now as many indicators are oversold and one can can't 5 waves up complete. And today's weakness drew me in to take a small short term short position on the S&P. But the rally later in the day put that play in serious jeopardy. The stock market needs to fall tomorrow early for the short term bear play to remain intact.

I don't think wave 2 is over yet, so this setback, should it occur, will only be temporary. I expect the S&P to get into the 1000-1100 area before topping and collapsing massively. Any new significant develops in that respect I will post here. Until then............I wait.