2/10/2008 8:54:31 PM
The market is moving sideways. Where does that leave us?
The beginning of the week started off with a gap, continued lower and then ended with a doji. Ending the week on a doji says a lot. It says that the market wants to change direction and continue higher - at least passing enough time (and price) to fill the gap.
It also says that the bulls and the bears are in a power struggle. With any power struggle in the markets, there are ups and downs. The power (price) and magnitude (volume) of the ups and downs are both items that the bulls and bears struggle over. Neither side likes to lose, so whoever wins the struggle tends not to give up quickly. That is just one more reason that the gap from the start of last week should get filled.
After saying all of that, where does that leave us? The answer is exactly where we have been for a week now. Perhaps a few days will move some of my indicators in either direction - but for now, only one is poised in a bullish fashion, so we'll hold our present position.
Keep your eyes on your inbox for a potential intra-week update.
Stand pat with our previous weighting suggestion (see weighting below).
Current Weighting Suggestion:
1/3 in Bullish Leverage
2/3 in CASH mode
You can email me with any questions at firstname.lastname@example.org.
Have a great week!