Thursday, January 22, 2009

Markets may be going into a selling climax

Noticed the first signs yesterday before I put the hedges on. Unfortunately I observed more of the same today that forced me to put second hedge although intraday timing was little off again.

Now you have to listen carefully. The short covering rallies which are quite deceptive can be a cause-building because unfortunately market can not move away from what I consider a very important pivot around 800. I did not want to carry big contracts with such a market that closes near this important level consecutively. So I am only left with ES and ETF longs that are fully hedged via YMH9 and I am waiting for the market to tell me what to do next. I do not have a very clear read on the market at the moment. I am waiting for the certain occurrences to take place in order to move ahead decisively.

I will post another update after the close as we are at an important juncture.
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