So after two month hiatus from blogging and very less trading, I am ready to jump in. Hold on! by jump in, I don’t mean start trading. Let’s wait till the tug of war between the bears and the bulls shows direction. As of now
bulls are winning bears are having hard time keeping up.
Let’s look at couple of charts –
The two big rallies seen both last Friday and back on June 29th have kept the bulls in charge although the price action overall continues to be mixed and mostly unimpressive. This is not to mention the anemic volume and the ADX on weekly chart.
So why are we seeing so much confusion –
- Unemployment report – Nah! Look at the Friday’s rally
- Poor earning’s start – Nah! Look at the Friday’s rally
- Market is about to get the QE3 – Bingo! Look at the Friday’s rally. Don’t ever question the printing press of Bernanke!
What do we do? Sit tight and wait for earnings to shift the balance and we will follow the market – because Mr. Market is always right.
Gentlemen, Going forward I will be posting updates twice a week and portfolio summary every week once. I will post the trade as soon as it is made and the reasons for the transactions. I was busy with work and few other stuff. In short time, I will be bringing out the prototype of software that will generate trade signals based on rules. This will be followed up with an app.