Monday, May 18, 2009

Waiting the Next Overbought Signal

Looking back at the last couple posts, I realize that I did not specifically say to put a "day only" order in for the 25.49 limit order I suggested last week, but that was my intention. So if you put that order in GTC, then I would suggest cancelling it and just wait for the next overbought signal to exit.

Based off of today's fast retracement of the last couple days' high to low range, coupled with bullish divergences on short-term indicators across the board as of Friday's close, I am favoring a move to new highs in the S&P before this rally is done. In either case, the short-term model still has a good bit of room before becoming overbought, so just wait on the signal.


No comments:

Post a Comment