Blog and Market Update

With the QLD trade still in place, a 12% gain is a lock although the trade is up over 16% at Friday's close. I'm not expecting to go much higher this week without getting stopped out first. A sideways consolidation seems to be a given since shorts are covering but the longs don't think we hit the bottom yet.

The CMI is staying quiet for now and with that in mind it is important to remember that studying and trading a plan is more important that jumping in and going in the direction of the trend without knowing why. This is the case currently. I had originally said that I would not buy a bear market but it has paid off last week. The oversold condition illustrated by simple stochastic oscillators, and price support were the only reasons for jumping in. This is OK but there is more risk than letting the CMI signals dictate. At least that is what recent history reveals.

The overseas markets are somewhat flat in early trading so I will bet that the same goes for tomorrow's open.

The CMI results are posted as of Friday in the left sidebar. I will update when this trade closes.
Also, I have added the 'Gumshoe' to the list of favorite sites.