Daily Archives: July 11, 2010

Allowing for More Upside

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I'm in a bit of a quandary. Looking at individual stocks, I see almost nothing but short opportunities. Looking at the big indexes, I see the possibility – – but not the certainty – – of more upside of a little over 5%.

The ES, for instance, shown below, has room to run up to as high as 1130.

Picture 1
I'd much prefer the market to simply resume its downturn, but my preferences usually don't matter a whole lot to the market. The word this week is earnings; those are going to drive direction, and none of us know which way things are going to go. It's discomfiting, to say the least. 

A Few Bounceables

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I finished my weekend review of charts. My "bottoms-up" approach to trading is still screaming "short!", in spite of all the fear about last July repeating itself that I'm reading about.

In spite of the preponderance of short opportunities, a few brief bullish setups are on my radar. Here are a few; to my mind, most of these are simply "relief pops", and little more.

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