Wednesday

Market Breakout vs Swine Breakout

Post a Comment April 29, 2009 – 4:44 pm |   | Permalink |  Print This Post |

We personally pay very little attention to the daily gyrations of the market based on “news”. Potentially the Swine flu could be deadly to the economy, but preemption and gross over reaction before the full impact is known is not the way to trade or invest. Today markets breakout as an intraday day is made topping last Friday’s high. We open another short DAX at $5/point at 4700 ( Dow is 8160 at the time of writing).  Most people are calling for higher highs, but this could be another false breakout. We expected a volatile day, so who knows what it could happen in the next few hours. We will have to watch this one closely - any show of continued strength will be worrying (we will therefore consider taking a small loss).