Monday, 4 July 2011

Market updates - Week of 4th July 2011

All short bets are off now as the markets' powerful upthrust off the 200 day MA had short sellers scrambling to cover. Either this is is bull trap or the recent market plunge is only an intermediate bull market correction. If the latter proved to be correct, then the markets look poised to break new high as buyers come in to buy at dips.

Personally, i have switched from being bearish to neutral. I will be looking to buy if / when the stocks retreat back to retest the support area. For bullish continuation patterns, we should be looking for stocks to consolidate around the resistance area instead of seeing price action making lower lows and highs. Below are charts for S&P500 and LVS.

S&P500


Las Vegas Sands



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