Flip Flop

Investors seem to be flip flopping from extremely bullish to extremely bearish and back on a dime. Bulls could have made money buying weakness while bears could have made money selling strength. Those chasing breakouts and breakdowns have been getting tossed around.

I prefer buying weakness as long as the market remains oversold. Seasonality will turn positive on Tuesday and remain that way for the balance of next week. This is not an easy market to trade but there are opportunities for the nimble.

2 comments:

Anonymous said...

I believe stops at the s&p 200sma need to be decisively wiped out.  there is a herd of stop sells there 1% below support line and we bounced twice this past week.  yesterday's squeeze was noise and greece bailout doesn't really matter.  if we get a real sell today or monday, it would be a prized long.

Tsachy Mishal said...

I agree that would be a good opportunity but I dont think we get there. I
was surprised that we went down so much yesterday so I could be wrong again.