Wednesday, March 2, 2011

Once Again The Fight Is On Tomorrow - Bulls Very Likely Winners Again

SGS is Long (as of close of 12/1/2010)
RTS 20110103 Long Portfolio

The Positives: 
  • All major indices expect for TRAN are still above their 50 D-SMA.
  • Average and even below average volume on down days.
  • Number of new lows not expanding on NYSE or NASDAQ on down days.
  • No panic selling of large or small caps on down days.
The Negatives:
  • TRAN below its 50 D-SMA for 7 trading days now.
  • Bear flags on major US and world indices.
  • Oil above $100 and unrest in ME.
Tomorrow Bears will try to take SPX down below its 50 D-SMA (currently around 1294).   Chances are good that side money comes in and buys that dip, I know I would.

Tomorrow will be either a huge up day or a huge down day.  Best scenario is a moderate sell off to SPX 1294 initially, then finishing up with a big rally and closing above SPX 13 D-EMA (1317) with good volume.  I think Bulls will get their wish.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.