Thursday

Rule #1 Do not overleverage

Post a Comment July 16, 2009 – 5:38 am |   | Permalink |  Print This Post |

We pulled the trigger today at 4000 , short the ASX 200 for another $10/point. Be mindful of leverage - the market is showing very bullish internal strength and most respected technical analysts have gone long. Last nights rally triggered numerous BUY signals across a sea of indicators. We are not so sure about this rally. Our inter-market indicator suggest further weakness, and more importantly  we are a long way from the bottom. This indicator is unique and we have not seen any other site refer to it. Many are now talking about a Bradley Turn Date, which fits nicely with our turn this week. Whilst many believe this is a trough and that we are heading up, we will look for a pullback to get out of our recent ASX short position alive (and hopefully deprive the people at Goldman from squeezing us out). This turn date may actually signify a TOP and not a bottom.