Thursday, May 22, 2008

Goggles On

To the point, yesterday's action was unsettling and has put me on the defensive, but here is how I view the very short term...

Volume was rising and distributive, but not major; market breadth was obv. negative, but far from dramatic; holiday seasonal strength is in the cards for Friday and Tuesday.

I'm hedged at the moment, but I will dart out of the hedge today as soon as I see decent internals and action (I will hold onto the hedge if I do not). At that point I'll look to lighten much further on strength tomorrow and Tuesday and ultimately play a bit of the waiting game from there.

It still may be too soon to start getting net-short here. Then again, perhaps it is not. I'm not pretending to know, I will just attempt to respond.

Good trading.

[Edit: 20 minutes into the session I have added CSIQ long (below 41), which has pulled back today to the 10-day m.a.; I remain hedged with the QID...for now]

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