Tuesday, June 21, 2011

Stocks Rally- Will It Continue

Well if you read my last post regarding the stock market, you would know that I was expecting some kind of bounce  off the 200 day moving average and that is exactly what has happened.  Over the past few days, the S&P has rallied slightly over 3% and has made a 10 day high today. The question is, where do we go from here?

In my opinion I think stocks are about to head back down again. The rally that we've had over the past few days seems to me as nothing more than a short covering rally. I say this because the volume has been rather light over the past few days. Don't let last Friday's option expiration  spike in volume fool you.

I am using this rally to short the market once again. I feel now that  the Prime Minister of Greece received the vote of confidence from Parliament we will see stocks sell off. Kind of like by the rumor sell the fact sort of thing. I actually shorted lightly today at the close and will add to my short position in the next day or two if I see further confirmation that the market is indeed heading lower.

1 comment:

Anonymous said...

Thanks kevin,
Great blog, been following it for some time. Being very much a novice still I always appreciate the incite from your posts.

keep up the good work!


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