Monday, January 31, 2011

Morning Update

Amazing, in the face of all the news and uncertainty markets catch a bid.  As we compared back to the April 2010 correction, the day following the big red candle we did bounce back to the middle bollinger and so far that is playing out today.  What is really interesting is the DXY.  It gave back all its gains.  Have to wonder what the future of the USD really is.  Seems like no one wants it.

I'm not adding to any positions until I see how the next two days plays out assuming they are similar to what we saw last April.  Markets are still conditioned to buy the dip and this move up will further exhaust any long money left.

I'm glad I mentally prepared myself for this move up in thinking through what the price action may be today.  Still crazy early and data in a few minutes could move the needle either direction.

I still believe shorts will be more emboldened here with a stop set at the prior highs on Friday.


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