Good News Sold

The selloff on Friday came on bad news, while today good news is being sold. I prefer this type of selloff when looking for a top. That said, I don't think we will make much headway on the downside before the seasonally strong period ends. The best I believe the bears will be able to do is a retest or a slightly lower low than Monday. The real downside will need to wait for May.

1 comment:

PJ said...

Good news in the US but bad news in Europe where yields on Greek and Portugal debt soared and Germany had a failed bond auction -- only euro 2.4 bn of a planned 3 bn were sold. And the market closed flat. So not much of an indicator there.

I'm expecting bad unemployment claims data tomorrow morning, will be interesting to see what happens. Bought VXX today with idea of selling tomorrow if it spikes up.