July 26, 2009

Bulls in control

After last week’s price surge I speculate that this bear market rally may extend another 2 months before falling down hard.   From market breath indicator, this rally is indeed broad market rally and the number of stocks reach their 200ma has reached a high of two years.

 

I expect some pullback next week, so key question is are you willing to buy this dip.  I have no answer to myself yet.  I will check the strength of this pullback and then make the decision.  In the long term, nothing changed.  I really do not like to trade against the big trend to catch the last profit in the counter-trend rally.

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