Sunday, January 15, 2012

Bullish Resolve

But anything I could have said
I felt somehow that you already knew
--Til Tuesday

The bullish reverse head and shoulders pattern forming recently in the equity indexes such as the S&P 500 (SPX) has indeed resolved to the upside.

The action hasn't been voracious out of the set up, but the tape has a persistent 'buy the dip' tone. Now that SPX 1280 has been cleared, this move technically 'works' to 1360.

I remain slightly net long (long commodity ETFs against short equity index). Should commodities continue to lift with stocks, I'll look to piece out of long exposure and perhaps become net short.

position in commodities, SPX

1 comment:

dgeorge12358 said...

Whatever I was told to buy, I bought. It took me a long time to discover that this method never works.
~Nicholas Darvas