Wednesday

Markets Trying to Break Through : Sell Confirmation

Post a Comment April 22, 2009 – 10:25 am |   | Permalink |  Print This Post |

Our indicators suggest markets going down Wednesday. Yesterdays rally retraced 43 percent of Mondays fall - typical of a bounce - and NOT an uptrend. We will hope for the markets to mirror last nights price action - but instead of falling we hope for markets to go up first (expect some “good news”), then fall. The German Dax will be our favourite to short, having gone up the most. And we will aim to short at 4600. Being a nice round number, 4600 coincides with the resistance - hence it would be nice if it goes to 4600 and even inches above it. It should not break through Fridays high - at 4700; if it does then all bets are off (ie likely to go higher). We will do what we did last night - ie to short as markets go against us (ie >4600) - but will put a stop loss above 4700.