Sunday, December 2, 2007

Weekend Equity Market Comment - 12/2/07

The market has made a clear impulsive move up from the lows, which is very bullish for the intermediate term. The mode of buying weakness continues to be the prudent action to take.

For those who have rode this rally from the lows and wish to shave some short term profits, we are at or very near an area that would be a great place to take profits.

It looks to me as though the first short term leg up was completed at the opening on Friday and actually the first leg of the corrective action may have completed Friday as well as the counter rally. So, if this is the case then Friday was a pivotal day with the High, First corrective leg and counter rally to that correction all wrapped up in one day.

If this is the case, then we should look for lower prices as early as Monday, with the potential of these prices to be sharply lower.

Short term position traders may even put themselves into some short futures positions or options and ride the move lower as it should be done very quickly.

Just remember that we remain in the buy weakness mind set.

1 comment:

asbestos_handkerchief said...

Great blog...and some great calls as well.

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