Next leg down

The Dow Industrials have reacted appropriately to trendline resistance.  As long as it does not move above the red line, it should make it's way toward 6000.  It will probably take 6-8 weeks.  TWM (now at 54.47)  and SDS (now at 67.19)  are good inverse funds to take advantage of the impending drop.  

Short term uncertainty

Originally posted April 8, 2009 by andrewgutman

I apologize for the back to back posts, but an indicator has changed (vix dropping) and left me uncertain about the next move in the market. Therefore, I am exiting positions and waiting for a more clear picture.

5th wave may be coming

5th wave may be coming
Originally posted April 6, 2009 by andrewgutman
There are numerous sectors approaching resistance and developing divergent oscillators. I believe there will most likely be a strong selloff in these markets, probably starting this week and lasting for a month or two. Below is a chart of the Dow Industrials explaining what I believe is happening. We must still wait for confirmation. Specific recommendations will follow in the days to come. Happy Trading to you.