It may be time to start establishing some short positions. Obviously, it's not possible to know whether the bear market rally ends here or if it has 15% more upside (remember, lately the average bear market rally is good for 25%, on average, and we're only up 13%) . The strength of this current rally has to be respected but ultimately faded. One good way to do that without getting caught with your pants down, is to build positions over time and doing so around key levels of S&R. Here's 3 examples: FAS, JPM, and SPY
FAS
JPM
SPY
Monday, March 16, 2009
Building short positions
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2 comments:
I enjoyed your thoughts on the three charts, i have already started to build a short position in JPM nice over head resistance.
Thanks Phillip. I just found some of your work as well - I will take a look this evening.
Happy trading and Happy St. Patrick's Day!
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