Volume of SPX was the lowest we have seen for this year and we have not seen much volume this year so far anyway. That says something. There is no clear direction in the market as yet. While index opened higher on the back of Greek vote, it failed to take out the previous high. Is it a double top?
We will know tomorrow which way the wind is blowing. In the mean time the Analog is looking like this;
Apple made a new high today. Possibly it is the only reason COMPQ keeps grinding higher. However Chris Kimble has a very interesting chart for Apple.
Will Apple be able to break this seventeen year old trend line and keep going higher? There is huge euphoria in the main stream media that Nasdaq has reached the eleven year old high. As if that is something great. Add all the inflation and cost of money and we are worse off eleven years after. And thank Ben for reaching this milestone after eleven years.
Euro gave back all the post Greek vote gain and some more. Gold is just hanging on but barely just. But with momentum so strong and liquidity so much, it may not before end of March / 1st week of April that we may see real downturn. Any correction at this point will be a short term buying opportunity. But at least a 70-90 point’s correction in SPX can be expected at this point of time, staring most likely from tomorrow and lasting till about February 24-28. I think there will be one more rally after that which will take us till end of March.
I am changing the way I present this blog. Because I have failed with my last call, I better stick to the basics and stop showcasing my trading records. I need to improve my trading skills and to that end, I need to be more modest. Accordingly, I will not be posting the trading journals till such time I am satisfied with my performance.
I have made some wonderful friends here and all the comments and suggestions will hopefully make me a better trader. I will continue to share my ideas and thoughts about the market and would request you, dear readers to share your thoughts as well.
Thank you for reading http://bbfinance.blogspot.com/. Trade safe.