Wow! What a difference a day make, and I don't mean the election. Yesterday, looking at the price action on the indices and some of the stocks in my list, they all seem to be in a short term slight bullish trend. Then today, BAM! Reversal all over the place. Dow dropping nearly 500 points and up/down volume 10 to 1 favor the down volume. nearly half if not more of the stocks in my list and in some of the indices shown bearish pivot reversal pattern today. The day before, it was less than a hand full.
The market again reminded us not get bullish yet and that its primary trend is still down. Luckily, I'm very much in cash and any long positions I hold are small and short term. I will continue to be cautious and trade with small position sizing. Nibble on the short and dabble on the long when opportunities arise, but keep it small and brief.
Oh yes, GLD. From yesterday price action, it appears the countertrend move might be developing into a reversal move. It appears to have formed a double bottom and could be reversing its downtrend. But today's price action might abort that move. Need to keep an eye on it to see if it can hold above the 11/3/08 or the 11/23/08 close. If it does, then the trend reversal still possible. Otherwise, downtrend will continue.
