Dow is rolling over to red. Off modestly and there is still hope for an afternoon rally. Should the bulls give up here it would not be good. It is now a struggle of the shorts, who may be emboldened by the noon sell off and the bulls who gained confidence yesterday. The shorts must be threatened to continue covering.
Should the boys put more money to work and rally ’em there is reason to believe we could go up another 500 Dow points.
But hope is not a strategy. So, I have entered stops pretty close on new buys and raised those of older positions to avoid another January fall.
