Now can we see which direction they want to take this market? Definitely not! The sideways mode of this market is still in progress. Anticipate the sideways mode will continue until the 50 day moving average catches up. The most poignant indicator of a trend change will be a breakout, one way or the other, of the wedge formation that has formed in the indexes. The prudent strategy remains the same, have both long and short positions in the portfolio until there is a definite breakout one way or the other.
December 9th Daily Market Comments
Now can we see which direction they want to take this market? Definitely not! The sideways mode of this market is still in progress. Anticipate the sideways mode will continue until the 50 day moving average catches up. The most poignant indicator of a trend change will be a breakout, one way or the other, of the wedge formation that has formed in the indexes. The prudent strategy remains the same, have both long and short positions in the portfolio until there is a definite breakout one way or the other.