Why am I getting all London Town on you?
I’m minding the gap because Monday’s gap down was predictably filled today as promised by the chart. Next we have to wait for Apple and Bernanke… Without these two wildcards this chart is a sure bet from the short side because we still sit below the 50 day moving average.
I think there could be some whipsaw action so I went all cash for now for our discretionary account. I will watch the bullets fly and sort it out afterwords — too much risk either way as the short side is likely getting crowded, the RSI is getting more oversold, and the news will be driving the tape. So for me, I’m out for now… For the model, Hedgephone.com is bearish equities here as we have been for a month or two. We always suggest stopping out of losing trades and moving back into the trade when the tape is favorable to your side of the action. Right now, the short side looks OK but you have to watch the 50 day, Apple, and Unlce Ben. For now, below the 50 day the momentum is actually solidly on the side of the mighty bear. Watch out because this could get ugly…
