In all our earlier updates, we have been showing this inverse chart and stating how bearish things are. Today, we thought let us for once hear out our friend Bulls and use the Bullish case instead.
The above is a "go long" chart and is inverse to what we present all the time.
As you can see, we are just making lower highs and lower lows here. Indicators are mostly balanced out as there are divergences on both sides of the coin. Negative as well as positive.
Since today's action was "extreme", we do expect some sort of follow through tomorrow. But we still are sticking to our theory of 1000 and below before we even try any attempt at 1100. Stocks do NOT just rocket higher without first creating a) divergence and/or b) higher highs (if it were to move even higher).
In our case, we have NEITHER at this time. Hence, our case of 1000 and 950 still stays strong. Today was a "dream come true" for all those who either wanted to go short or were able to play the "massive" swing by closing shorts early in the day and then going short again at EOD. :-)
Not ignore the "bulls", most of our indicators have turned neutral now, as opposed to extremely bearish. What follows through in the coming days will dictate which way we end up.
GLTA
seems really hard to predict since the up down happened so quickly in the same day. i am not sure i did right thing, bought little more DRV, but don't know whether it could drop to 29.
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