Friday, August 8, 2008

Buying opportunity

The trading cycle averages 28 to 43 days in length. Normally we see a half cycle low somewhere around day 18/19. Yesterday was day 17. I still think this rally has more to go. Mostly because I don't think oil is done going down yet. This pullback is most likely the half cycle low and probably a buying opportunity. In an uptrending market two days down in a row greatly increases the odds of the next day being positive. If I remember correctly 3 down days in a row has odds over 90% of being positive the next day.