Tuesday, April 10, 2012

Sell Signal Generated.

Today we had confirmation of the trend reversal in the trend following model. But McClellan Oscillator is severely oversold.
 So I am not sure if I should go short now.
 From the TA point of view, it is quite possible that we will have a bounce and re-test of the previous high and only when such a re-test fails, we can be sure of longer term bear market.
I would like to draw attention to the last Friday's report where I had shown cases of re-test of earlier high.
Otherwise it will be a flash in the pan. Once we are confirmed of a bear market, we can expect it to continue for a while and not suffer whipsaws.
I would be busy with additional work in the office and that may lead to delays in writing the blog.
Thank you for sharing my thoughts.