Monday, November 10, 2008
Is the rally over? Or close to over? For some time I am having this nagging thought in the back of my mind. The earlier decline held to the 38.2% retrace at 2860 and bounced back nicely. But now it could face very strong resistance to the upmove at around this 3180-3250 area. If it breaks out of this, there could be another quick 200 point upmove. But somehow I dont think we will break out above 3250 also very easily.
Now, even though I said what I have said above, we still can have more rallies and I am open to that possibility. But let it be. We can afford miss out on the last 10% of the rally as long we get out safely...Retest of the lows is quite possible from here...There are some other important things here but I will talk more about that in next post.
So, I am going to sell my cash longs today on any rally pops and maybe build some small shorts. Its not a good day to do this because there might not be a big rally today but I will see what rallies I can get so I can sell into it...
Charts to follow later.