Couple more down days probably
First, HAPPY TEQUILA DAY! What a great holiday for my favorite sipping beverage.
Now, on to business. Tomorrow it will be Fed rumors vs the world. On the bullish side we have reports that the Fed could announce stimulus plans next week. That was the impetus for the end of day rally today (along with being pretty oversold). Fine. Lets see what the bears have on their side. Spanish 10yr bond above 7.6% = bearish. Questions about Germany's ability to maintain it's promise to save everyone = bearish. Moody's cuts outlook on EU stability facility to negative = bearish. Apple earnings disappointment = bearish.
We'll see who wins out, but the RumWave and the daily scores (remember, they are two different means to measure the market) suggest at least one more down day, and probably two before we adopt a bullish stance.
The 4 hr chart looks like it needs a little reprieve, but the purple line of the slow stochastic needs to catch up to the red. Bearish.
Overall, I'm ready to abandon the short positions for the UltraWave in the next couple days and rotate into the 3x Long DJIA ETF that I prefer. However, the signal isn't here yet!
GOOD LUCK TOMORROW!