sp'daily5
Summary
A pretty quiet day..and I've little to add.
Equity bears have innumerable levels of support to break, not least the big 50 day MA, lurking in the 1820s. Primary trend looks set to hold at least into next week.
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Question from a reader...
'I am confused. Not too many days ago you highlighted DRYS and said "if it got into the 4's then it would be good for a run into the 5's. Then it failed in the 4's and you thought it would attractive in the $3.75 - $3.80 range. Well, now it is "there" and now you don't like it at all. I bought in the low 4's but did not sell after dropping lower because I thought we were looking for a bounce at this level....now you think it is done and headed still lower? Thanks in advance on your thoughts, Ken Z.'
DRYS, daily
A daily close,right on the 10 AND 50 day MAs. Certainly, DRYS is 'somewhat on the edge'..although the broader trend is still broadly bullish from last summer.
As it is, price action just doesn't look so great. I guess its hard to explain it, but after watching this nonsense for so many years, there are times when even if something hits a buy target, I might still leave it alone.
*I should also note, I do not like seeing Copper (briefly break) <$3, along with the Shanghai Comp' <2000 (see later post @ 11pm EST). For me, they are another two variables that sway me from going long anything, not least a mere 7 trading days ahead of the next FOMC.
Call it a 'change of mind'...,'too afraid to buy'..or just 'not in the mood to get involved', but I do try to keep an open mind, regardless of targets.
This also applies to my primary intention to short the indexes on a possible 'brief FOMC' spike next Wednesday. I have a plan, but as ever..if the price action just looks overly strong, then I'll wait some more.
The one thing I am sure of, each day that we get closer to the spring, the safer the bears will be, when it comes to shorting the indexes. With just over 7 trading weeks until May, equity bulls will be facing a concrete wall of resistance.
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a little more later...