The State of the Trend

By: George Krum | Sat, Jul 23, 2011
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Three weeks ago, I suggested paying attention to the Q's as the leading market, and watching for resistance and channel breakout. Last Friday QQQ broke through multiple resistance at the 59.25-59.35 area, but still remains below channel resistance at 60.

SPX Trend

Given the overbought nature of market internals, and the prevailing bullish sentiment, in a normal market environment I would expect a retracement from current levels.

Percent Bulls

Considering the amount of interest focused on the political games being played in Washington, however, and the uncertain reaction that a debt ceiling deal or lack thereof may provoke, it would be foolish to rely solely on historical precedent. Therefore, my suggestion going forward is to stay with the trend but be very quick on the trigger.

SPX

 


 

George Krum

Author: George Krum

George Krum
www.citdates.blogspot.com

George Krum is the author of the "CIT Dates" blog, and the following apps available from iTunes:

OddsTrader - uses the power of Hurst Channels to produce price and time targets, and combines them with proper risk and position size management.

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world and to build long-term forecasts and models.

OT Pairs - is the first mobile app that gives users access to one of the most profitable and time tested hedge fund trading strategies.

OT Pivots - combines the power of Pivot lines with cycles and automatic signal generation.

Gann 9 - is the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/