BROAD STOCK MARKET TRADE ALERT (3:30 pm EDT)
In yesterday's blog on the broad stock market and our current short position in it, I wrote:
"We can have a stop loss for this trade now based on the DOW exceeding its June 16 high (34,589), the S&P 500 closing above 4,500, and the NASDAQ closing above 14,000. "
Well, today the S&P 500 is closing above 4,500, and the NASDAQ is closing above 14,000. The DOW, however, is acting bearish and seems to be staying below its June 16 high. Both the S&P 500 and NASDAQ are rallying strongly today, but the DOW is not, so we are getting mixed signals in this market. I am tempted to stay short as a correction could be imminent, but it seems like there is now a good chance this rally could continue with a high into next week's reversal zone (July 18 - 26). I am going to cover (unload) my short position in the broad stock market now with a small loss. We may be able to recover this loss by selling short any new highs in this new reversal zone over the next two weeks.
In yesterday's blog on the broad stock market and our current short position in it, I wrote:
"We can have a stop loss for this trade now based on the DOW exceeding its June 16 high (34,589), the S&P 500 closing above 4,500, and the NASDAQ closing above 14,000. "
Well, today the S&P 500 is closing above 4,500, and the NASDAQ is closing above 14,000. The DOW, however, is acting bearish and seems to be staying below its June 16 high. Both the S&P 500 and NASDAQ are rallying strongly today, but the DOW is not, so we are getting mixed signals in this market. I am tempted to stay short as a correction could be imminent, but it seems like there is now a good chance this rally could continue with a high into next week's reversal zone (July 18 - 26). I am going to cover (unload) my short position in the broad stock market now with a small loss. We may be able to recover this loss by selling short any new highs in this new reversal zone over the next two weeks.
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