February 7th Daily Market Comments

There were numerous bullish signals yesterday, many bullish engulfing signals and piercing signals. Today there is a lot of follow-through, bouncing prices back up toward T-line’s. But be careful, the T-line remains a very relevant indicator for the confirmation of price moves back in a positive direction. After severe selling in the markets and individual stocks, it will not be unusual to see some waffling below the T-line for the next few days. Any bullish trades placed today should be done with the anticipation of moving back out of those trades very quickly if the buying is not maintained. Numerous short positions should have been covered today with the confirmation of bullish reversal signals yesterday. Remain nimble until the indecisive nature of the market establishes more upside or whether this is merely a quick bounce.