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Mike
12-13-2011, 06:18 PM
We got an S9 signal today, a close below the 50-day moving average. The brings the number of buy signals being held in our pocket for a possible FTD to zero. All in all not a positive development. When this rally started it began with a low percentage of stocks showing heavy distribution. I have found these set ups to be failure prone. It is probably an indication of complacency. Fear is a much safer place to begin a rally.

So far this rally is moving directly down the path of the previous 5 bear markets, a stall at the 200-day on the first bear market rally and then failure. We may not be done dancing with the 200-day. This could grind on for a long time. Eventually we we see a decisive break up or down.

Given what I believe above, this is no time to fool around with a long position in the market. I have been short BIDU.

barbados11
12-14-2011, 07:58 AM
Mike,

Thank you. When did you short BIDU? I saw it but can't recall when or where I saw it?

Regards,

Pablo

Mike
12-14-2011, 08:06 AM
Mike,

Thank you. When did you short BIDU? I saw it but can't recall when or where I saw it?

Regards,

Pablo

Pablo,
I shorted BIDU on 12/6/11 at 133.39. I would like to have gotten it closer to the 200-day but close enough.

barbados11
12-14-2011, 08:09 AM
Very nice Mike. I had seen it but was going crazy not remembering:o) Thanks.