Wednesday, November 28, 2007

The Robots Win Again!

Apparently, my suspicions after 10am yesterday were correct. That was some real buying we saw yesterday, not just short covering.

The way it works (at least according to IBD) is that we now would need to see a "follow-through" attempt to confirm yesterday's rally. A "follow through" would be an advance of more than 1% (I think, maybe 2%) in any of the indexes over the next week or so on juicy volume.

Naturally, this nascent "rally" would be declared dead if the major indexes undercut yesterday's lows.

We shall have to wait and see. Now will either be a great time to initiate new short positions or initiate new longs. If you get on the right side, you win a new house... if you choose wrong, all of your worldly goods will be taken from you and your friends will stop hanging out with you.

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