Today morning, before the trading started I sent out this twitter to my readers; “Good Morning Folks. Expect markets to open higher go lower. Not much conviction.”
How correct it turned out to be !
Yesterday I wrote that I expect the market to go down. In fact I have been writing for a while that December 6 would be the short term top and so it was. I am also harping on the short term bottom around December 14, which is tomorrow. I can’t say for sure how tomorrow will be. For that matter except GS and its ilk, who do God’s work, I don’t think anybody can predict tomorrow. However we can only guess and make evil plans.
I think we will see some more selling tomorrow. May be SPX will honour Fibonacci and go down near 1200 before it reverses course.
But I have closed my short position in SPX. I firmly believe that I should leave the last 5-10% of the move for the next guy. I was lucky to get into the position at the top. It does not happen always and maybe I am cutting short my profit but I do not want to be greedy. More so when my indicators are telling me that a bottom is nearby.
Only short I am carrying now is that in gold. I just want to see how the Asian market reacts to the drop.
Why the markets opened higher today in the first place is beyond understanding. Did anybody really think that the Fed will give Christmas gift? Did anyone confuse Uncle Ben with Santa? Although today was his 58th birthday. But we were not supposed to get any gift from him in the form of QE3. Happy Birthday Ben.
The plan for tomorrow is to watch the market action from the sideline for the better part of the day. Although I am calling for a bottom by December 14, I think some weakness will continue in the market till December 21, when the Fed has schedule another $ 21 Billion T Note sale. On the other hand, Banksters need to show positive year and make money. How otherwise they will help stimulate the economy! And OE week of December and seasonality is positive. So better not get caught up in the uncertain water. If I think of some good trade, I will write / tweet.
I have one request though. If anyone of you have been following my buy / sell signals and have made money, please donate 1% of your profit to any charity of your choice. Let the good karma go around.
Thanks everyone for following me in Twitter (@BBFinanceblog) and keep reading http://bbfinance.blogspot.com/ regularly to profit from the world of finance.