shortin' season?

I decided to get out of all longs today except for the financials. Slightly late, but can't complain as there were a couple of very good winners.

The problem was that virtualy everything hit RSI 70 a couple of days ago. This wouldn't matter if we were indeed in an upswing, but in a bear market RSI 70 is probably the most reliable shorting signal of all.

As well, the resource majors broke trend yesterday, which is not nice. They had been on trend for far too long, so that is hardly a surprise, but still ... it gives one pause for thought. BHP also failed the last top, though it might have another go after a run like that. If it does you bet I will be hard short. RIO is also creeping up under the old trendline and is pretty much a natural short.

You bet we are coming up for a nasty September.

Its really hard to know what is going on in terms of E-waves. - BHP is in some sort of very complex correction since Nov and I cant get any sensible count.

Its lucky I hung on to my bank shares as they really took off in the afternoon. CBA is coming into dividend and I wanted to be there for the occasion. But I dont like to see CBA as the most green stock on my list, not natural. Im up very nicely and maybe I will pull out.

It looks as if XJO has broken above the upper trendline today. That may be a false breakout. I had expected it to go to 4250 which is 1.62 times the last decline Jan to March. Maybe weve got another up day here, carried by financials.