Sunday, July 5, 2009

1-2-3 reversal in the Dow

On Thursday the Dow completed the 1-2-3 reversal that I pointed out on June 17th. The odds are now stacked against this rally continuing.

I also pointed out the 4 day rule trend reversal two weeks ago in the June 24th nightly update.

I think the cycle of negativity has started. With Thursday's decline we now most likely have all three time frames (secular, intermediate and short term) back in gear to the downside.

This is probably not a good time to try and take long side trades. Notice I said trades not investments. I will not touch my junior mining stocks. Like I said in one of the other posts; I'm trying very hard not to do something stupid anymore.