The market has been oversold for a couple of days. Yet, the bulls don’t seem to care.
I was banking on hedge fund managers, hungry for redemption, to go long and for the Obama glow to last a while longer. Now, am not sure that will be enough.
On December 31st we blew though S&P 900. That level lasted for eight days and we haven’t seen 900 since. Now at 867. That may have been a classic low volume bear trap to which I succumbed. For the bulls to be vindicated we should get beyond 900 in a hurry.
We must see some serious buying soon or the trend I had thought was up will be down.
Am thinking the bulls simply cannot see over the abyss of horrible corporate earnings about to be announced.
The dour performance of GE and BAC cannot be helping confidence any. Both are down 6-7%+ on massive volume.
Tighten stops on any long positions. If this turns around you can always raise the stops to insulate losses.
