Added Exposure

I added some more  long exposure late in the day as we will be oversold at the close tomorrow. My plan has been to slowly add exposure as we approach the oversold reading, which is exactly what I have been doing.

Unfortunately, the only way anything gets done in Europe is when they are looking into the abyss. Ultimately they are unlikely to allow the system to implode but that doesn't mean markets won't need to freak out first. Have a good night.


Anonymous said...

The 10 day A/D line is +62. Given the world we're in  I think that number needs to be a negative. I agree that managers' underperformance probably puts a floor under this market, but oversold with a positive number happens in healthier environments.

Tsachy Mishal said...

We are dropping a large number today so even a flat day in terms of breadth today will get us to roughly negative 200. That is the reason i have been pointing towards today. A negative breadth reading today would get us yet more oversold.

Normally I would say that the fact that we are not getting a very negative breadth reading is a positive divergence, but new lows have expanded since the last time we were down here. All in all its an oversold reading. Not the best one in the World but oversold no less.