As I suspected a few days ago, Dow 1OK looks like it's going to touched and perhaps any minute now. Mr. Market is showing no mercy to the bears which is something I warned about a few week ago when I said that in bull markets you often get bailed out from bad long entry points but much less so with bad entry points on the short side. I've done no ST trading today so far and I don't think I will.
With the market making new 52 week highs it invokes a rule I abide by which is a market that makes a new 52 week high is likely to keep making them. A lot of people hesitate buying or like to sell long positions when a stock (or market) hits at a 52 week high thinking that it's too high. Most like to buy instead at 52 week lows. Although this may seem smart i.e. buying low and selling high, it's usually the wrong thing to do because a stock making a fresh 52 week high or low is usually indicative of a trend that is gathering steam....not exhausting (on a longer term basis).
Once again we are seeing an up day starting via a gap up which I've mentioned ad nauseum I don't view as sustainable on a multi-week basis. Of course, there have been occasions where it has and I'm respectful of that in addition to the other bullish forces I've touched upon before.
You wanna go short at least for a trade? wait untill you see the whites of eyes of the bears....I don't think we're quite there yet.
I'm watching nat gas here to see if can hold near current levels on this dip. UNG at around $11 is a critical support that is being tested right now.
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