The past few days are a great example of why, even if one does not believe in technical analysis, it is foolish not to understand it. We've had almost perfect bounces off the 200 day exponential moving averages both yesterday and this morning.
While this is still a 'day trading' type of market, not to be trusted on the long side - just as earlier in the week one wants to take profits on indexes as we approach the 200 day, and then re-engage either on a bounce or a clear breakdown below that level. That's how I play 'em anyhow.
Thursday, June 16, 2011
200 Hundred Day Moving Average Holds Firm for 2nd Day
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows