Wednesday, May 12, 2010

An interesting day lies ahead

With the S&P stopping just shy of the MA(50) level, an interesting day lies ahead of us tomorrow dear readers. Will the bulls succeed in taking over MA(50) or would the bears manage to hold off the bulls? 

Here is what I think. Mind you, the following thought comes just from a gut feel rather than any charts or other economic indicators. Given this markets tendency to lure and deceive, I wouldn't be surprised to see the markets break the MA(50) level, lure the bulls waiting on the sidelines back in, get the frustrated bears to cover their short positions.......and then go back down again. The market is the greatest temptress dear readers. Woe befall those who fall prey to her alluring charms! Do not get complacent if we break the MA(50) and be on your guard. Consider yourself warned dear readers.

As a sidenote, gold does look good for a slight pullback here which should provide a good buying opportunity. From the metals space, I like TIE if some volume comes in.

Take care and good luck.


Is It Possible said...

At this juncture, lack of volume is a big concern. I believe tomorrow we may gap open and then drag the market down. Inverse ETFs like TZA, ERY, SRS, TYP could provide good entry for swing trade.

positiontrader said...

I am thinking along similar lines.

But if almost everyone starts thinking on the same lines, does it actually happen? ;)