2/17/2008 11:17:41 PM
Decreasing is the name of the game.
Well, it seemed like the bulls were in charge when I wrote my last article - not by much, so we didn't add any additional bullish leverage to our position. Looking at the charts now, the gap from last week wasn't filled, and it seems like resistance may have been set up just shy of filling the gap.
Volume has been wavering higher and lower, but still not helping the bulls (or bears) get the job done. Seeing that volume has been decreasing for four weeks, the resistance line looks like it may be safe for the next week to come.
With resistance being set and volume diminishing, does that mean I am changing our position? Not just yet. If resistance is broken, there is a chance we might be adding another 1/3 bullish position. If we keep bouncing off of resistance, there is a chance we might be moving to all cash. For now, we're holding our present position.
Keep an eye on your inbox for a potential intra-week update.
Stay 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!