This week we hit my target for the c wave decline and bounced off quite nicely. A slurry of bad economic news was apparently overtaken by slightly positive comments made by everyone’s favorite cheerleader Ben Bernanke. Today we hit that 1040 mark on the S&P again and bounced off phenomenally to establish what looks like a new uptrend. The word from investors is that we are rallying “because it is time to rally”. There aren’t too many economic indicators to motivate people to buy – it is most likely bottom picking and the fear of missing the last up swing. Until the uptrend is confirmed in higher time frames I personally will not take any overnight long positions. I’d rather look for bullish day trades to minimize my risk of bad news overtaking the upswing. This weekend I will be looking over my bullish watch list and picking the few stocks that didn’t break their downtrend through this past month. The numbers are limited, but those that made it should have good relative strength. Of course I’ll keep my eye out to make sure this isn’t a fakeout, I’ll be ready with a few shorts in that case.
Week in review