I am going to leave the BGZ posted trade entry the same as it is currently, but am just following up to suggest that if you missed the last trade entry on BGZ, then I am recommending to buy today before the close ASAP. I will probably post a stop for that trade tomorrow, but I want to see if there is any follow through down from today's reversal or not. For any new entry today, use today's low in BGZ as a stop loss point and follow the money management post guidlines in the "Best Posts" section for how much to devote to the trade.
Today looks like a high reliability bearish engulfing pattern in the making in conjunction with a "sell the news" type mentality among smart money in recent days.
Pete
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"Only 3 times NDX has hit a 3-mo hi yesterday, gapped at least +0.5% today, then closed below yesterday's low. 01/24/00, 03/07/00, 10/11/07."
ReplyDeleteThe above is from Sentimentrader.com's blog. So unless there is a big afternoon rally, we are seeing a price pattern that has showed up at some major bull market tops.
II survey again made a large bullish jump this week. We'll see about AAII tomorrow.
Short-term head and shoulders top on the S&P 500 looks very good so far, but has not broken down below the neckline yet.
Nasdaq short-term trading model is nearing oversold, so any follow though, especially if there is acceleration, down will indicate a change in market character.