Out trade 11/16, when our Momentum Change signal was confirmed, was entered at $20.50, with a stop loss at $19.78. That stop loss is still active.
The morning call is for the market to open lower on news of new troubles between the Korea's. It is reported the NK shelled an Island considered to belong to SK, killing 2 soldiers and wounding civilians, also causing considerable property damage. This is the second attack on SK in the past year, following the sinking of an SK ship. The ship sinking was unanswered by the SK's, so it will be very critical how SK responds to this new attack.
News out of the EU continues to be driven by Sovereign debt concerns. The bail out of Ireland is still not a done deal, and now Spanish debt is being targeted, with spreads reaching new record highs overnight. Portugal is also a concern.
Our Momentum Changes signal is still on Sell, with a near term target around 1165. We expect some kind of rally attempt from that level, and we will watch for a momentum change. In the mean time, the Bears likely lhave the upper hand.
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