Tuesday, December 29, 2009

Just a quick comment

Hope everyone is enjoying the time off. Looks like we are in the process of getting our end of year melt up here. Whenever I look at low volume pushs to new high I am getting very concerned with more upside. I remember last year I was trying to short a bit too early and ended up having to carry quite a draw down but the end of jan showed big gains on the short side.

Not sure if this goes into the "I learned my lesson" type of category but I am looking to enter shorts very soon, not today, but most likely in the first week of january. For now I am 100% cash with the exception of my USDJPY trade - unfortunately USDJPY looks corrective here so I am thinking we may push on to break through this resistance cluster or at least test the upper most ranges (which also means I am getting stopped out).

Other then that, I ask you to look at the monthly charts for AAPL and GOOG. Wow is all I can say - I think once you see what develops there you will concur that some pull back is very likely - considering that those 2 are the bull pushers I would expect the market to follow.

At this point a correction will be good for both bears and bulls, we shake out some weak hands, figure out how strong support is on volume and have a chance to see what 2010 will hold for us.

Statistically we are at bullish extremes, more so then ever before, I would dare to say those extremes are stronger then the bearish levels we had seen back in march which ultimately resulted in this amazing move higher. The month of January at least will give us more signs of what the year has in store for us.

Till then, enjoy your time away and have a good jump into the new year.

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