Im with you my friend, but i wouldn't say i was chicken, just being cautious.
The chinese market has taken already a hit, with more to follow.
See below chart of Shanghai Composite:
Notice how the index slightly breached the 38.2% retracement level before reversing with gusto.
The DOW is overdue for a correction and in my opinion looks weak.
It also has only recently breached the 38.2% retracement level, and i think a reversal is imminent, similar to the price action of the chinese composite.
See chart below:
You can see high volume at the low, this is the institutions stepping up to the plate. But the recent low volume can be attributed to the lack of interest of retail investors. Retail investors aren't picking up the ball, which means prices will drop until they do, or institutions step in again.
I just get the impression the DOW will chug along slowly edging higher, then one morning we'll wake up and it'll be down 200+ pts, then the selling will be on for young and old.
I realise this is probably an unpopular opinion, but i wasn't too popular a while back when i suggested a $24 price target just after BHP peaked at $50.
BHP Price at posting:
$38.01 Sentiment: None Disclosure: Not Held
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