Tuesday, March 24, 2009

Bullish signals everywhere


I had though that 20.20 on SSO will be taken out today, but that turned out not to be the case. 50 day MA on SP500 also held like charm. The volume was quite low (see the chart) - not the beginning of a leg down. All of these are bullish signals in the market. Even the relative elevated level of VIX is there to support another leg up. I will place the order to buy at the open tomorrow for the remaining cash position to nearest 100 shares. I will also modify the stop loss order to go below the 50-day moving average. The market has to be convincingly go below 50day MA to reverse the trend that has now been set up.

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