Close but no cigar. I am a stickler for data and trend, especially the antiquated confirmation indicator from Dow Theory. Therefore, I am waiting for DJIA to move above 10537, confirming TRAN’s strength. We are extremely close to that break through point –- less than 58 pts to go! Until then, I am a spectator, not a speculator. Frankly, I am not anxious to get back to the trading table, because I just don’t see any value at all. Maybe I am not looking hard enough. Surely there is got to be one sector out there with some kind of value. Or maybe I should just join the game of inflation.
Also note that last hour rallies are always triggered by program trading, meaning hedge fund and large institutional money managers are playing the market, not investing. The likelihood of a sell-off of these last minute purchases is pretty high tomorrow or the day after.
It’s a go fishing for the big boys. They spend millions buying up the market in the last minutes of the trading day, then dump them plus old holdings to anyone, most likely retail investors, biting the bait the next day. This is a common practice when institutional investors want to dump large holdings at a premium with little price disturbance.
posted by jason @ 10:04 PM
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