Golden cross of the 50 day and 200 day, sitting on the 50 day, selloff on lower volume, oversold...I mean, what else could you be waiting for? Time to put the gawf clubs away, find those cajones, and get to work. Acey is all in.
Goog to have you back with the bored, so to speak. As you know, President Blasto especially enjoys Mr. T. Seriously, I hope all is well.
Anyway, it's very difficult to call it day to day. The QQQQ's are the strongest index in StockLand with that golden cross (see chart). But, we did have a negative volume reversal day (i.e., lower high, lower low and more volume than Friday) so that suggests more downside maybe to the 50 day ema (34.50) before the bounce tomorrow or Wednesday. Tommy the Tiger doesn't think they'll let anyone out though. We'll see.
To me, I'd like to see us re-test that QQQQ 30.84-30.19 gap from early April as we approach the July 22nd Solar eclipse and the Bradley model turn date. Ideally, on light volume. That's where you can have some cajones for the bullish move into Mr. T's August, 2010 timeframe. Ms. Q doesn't like to keep her gaps open for any length of time.
I figure best case it bounces from here, I ride for a couple weeks till overbought and testing old highs, and then we take a breather again. Worst case, it heads toward that gap, bounces, and then comes and tests where we are now from below...in which case I can bail at breakeven. Either way, one of the lowest risk, highest reward entry days we have had in a few months.
Just have a hard time passing up the first test of the 50 day after a golden cross.
You might be right but the 50 is flattening and could go down. The market needs the correction. The news is bad. The economy is not growing yet. The 50 could go above the 200 for a short time and then go back below it until the correction is over.
If you are going long get some protective puts or other hedge.
Beware of the Golden Doublecross.