Tuesday, August 04, 2009

Plan A & Plan B

Since market continues to show strength today I traded long setups until the close. I am expecting a continuation of this bullish trend tomorrow and the trading plan continues to be buying the pullbacks and fading support levels until the facts prove this strategy wrong.
Nevertheless there are many conditions that any decent bull should be aware of:
  • Extreme bullish sentiment among retailer investors (ISEE=150), which is normally faded by the market .
  • Possibility of a double top on some important indices so I will be watching the following levels and indicators to anticipate a potential sell off if those levels are not taken out.

"Toppy" levels:
DJ Transportation




Nasdaq Comp




Indicators to watch: (signaled moves would correspond with a bearish move in equities)

USD


EURJPY- Important resistances zone (previous highs)



ZB- 30 year T Bonds Future

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