Can you say "Dead Cat Bounce?" I hate that expression as I love cats, and Mr. Loveydovey is sitting in my lap as I write this. But it is the most illustrative metaphor for today's action.
Not an impressive bounce from the hard down day on Tuesday. The EW guys are confused about whether or not we are in a small wave 2 or have started a larger wave 3 down move, but in any event, they all seem to believe that this should be resolved by Friday, and the direction should be down.
We will see shortly. In the meantime, the Momentum Change indicators are pointing to a decline and our positions are 100% bearish. I am hoping someone can point me to a site or commenter who has a idea how to describe action in the equity market, given the political unrest in the Middle East, Northern Africa, the parabolic move in Oil and Gold and Silver.. and then show me how the persistent weakness in the Dollar can represent the Risk On/Risk Off trade. I am certain it is "Risk Off, but I can't for the life of me explain Dollar weakness with out scaring myself to death.
Best To Your Trading!
Bill
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