Hoping For A Correction

If we get a move lower through Wednesday the market would be short term oversold. That would come right in time for the turn of the month and ahead of QEII. Maybe sentiment could even turn a little bearish if people start talking about QEII as a sell the news event. A decline through Wednesday would actually make a decent setup for a long trade.

I am still hoping for a correction because I am uncomfortable buying at current levels with sentiment too bullish for my tastes. Otherwise I will continue to sit on my hands with little risk.

1 comment:

Chaos! said...

CBOE Equity Put/Call continues to show high put volume. Over time I've found that negates the possibility of any significant downside. We may need an upside spike to get those numbers in line with the rest of the sentiment numbers (which also need a push to reach extremes).
This close to the April highs I'm dying to make a big short play, but it's too early.