Saturday, August 08, 2009

Saturday Rock Blog: Sweet Jane (it's a bull trap!)

I took some heat Friday but this action is feeling more and more like a capitulation top despite some obviously bullish technical signals. I maintained all my positions with stops set at Friday's highs. I'm hoping the recent breakouts will fail and that this is just a big bull trap to end a bear market correction rally. If the recent breakouts hold and there is follow through with volume then I'd be ready to declare the bear market over. On the other hand, if the market reverses then I'd expect a ton of late comer weak hands to panic. XLF should retest $11 if $13 breaks.

Disclosure: I own XLF puts.

1 comment:

tooquiet said...

For sure man. Bang a gong!