Tuesday, March 25, 2008

Market outlook - is it possible to know?

On march 13th in the post Market is about to change
I sighted buy signal on QQQQ weekly chart.

As we know now that prediction was dead spot on accurate as market moved substantially higher since that date.

Since yesterday I was closing my long positions and building short/puts positions, today by market close I am almost done with "the plan". I am very leery about been short right now, but I will primarily stay short until, let say IWM behavior will not change my intention. As of now $72.50 area represents very strong resistance, $70 is a Fibonacci retracement ( give or take ) and market has been moving up fueled by short covering and selloff in commodities long enough. If IWM will be able to penetrate $70, what I, personally, would not like due to been short from today, and if $72 will be taken, what I, personally, would not like even more ( at least we will know that "the market has changed - really".