Bounce, Bounce

With the unsettled news on Greece, the market is having a hay day by bouncing all over the place. This week’s price actions definitely gave some good trading opportunities to short term traders, especially to the day traders. For those that are thinking this correction is over, be careful. I'm sure there will be increasing number of talking heads coming out saying the correction is over if the market continue to bounce. Before one concludes this correction is finished, do some homework and take a look at the following charts.

DJIA:



SPX:



NDX:



RUT:




A word of caution; when a plan (whatever the plan might be) for resolving the Greece issue is finalized and announced, be on the lookout for a possible selloff. It is too obvious for the herd to think this market will go up when the Greece issue is resolved. This Greece issue will be resolved one way or another. Until it does, the market will be chopping with the news and rumors, and lot of traders that are playing the obvious are getting chop. So trade the market, not the news. My bias still remain bearish, but I'm picking off short term longs and shorts when the market present them to me until it resume its trend.