Tuesday, December 2, 2008

Things Kind of Up In The Air From My Perspective

Not a lot to say tonight because I just don't have a good feel either way after going through my scans. As I looked at the indices, I think they are kind of in no-man's land here and I am not sure which way we go. Today's action does look stronger than the recovery on November 6 (going back to the comparison I've talked about recently) so I am not as sure as I was that we fall apart starting tomorrow. I think if the bulls come out and somehow push this market through the resistance it is at now and through its 20 day moving average (which will come up next) then maybe we rally. That's probably a big task though. At the same time, if the lows of yesterday and today don't hold, then things will likely get ugly quickly. I guess I still lean bearish here and will probably still look at shorts tomorrow depending upon how we open and how strong any bounce we get is. The morning rally seemed weak to me and that is the reason I went short midday.

S&P 500, Nasdaq

I still am not seeing many charts come up in my scans and that is not good. As I've said a million times, we have to have leadership emerge if a meaningful rally is going to happen. I will put this one chart up that caught my interest - I haven't posted it before so just putting it out there as one to watch. I like the setup here, but I would guess the market needs to cooperate.

All Charts from Telechart 2007, Courtesy of Worden Brothers, Inc.

Not having an edge in this market is dangerous, and since today was a bit stronger than I expected, I am doubting a little if I have an edge here going into tomorrow. I will watch how things go, but as of now I don't see myself making any major moves unless I get a clear signal, which right now I don't have. Things just seem up in the air to me and we all know that anything is possible with this market. If anything, I will likely look for shorts like I did today, focusing on the inverse ETFs. Good luck Wednesday.

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