For quite a while I've been very positive that the price action in Yankee land is purely a consolidation based on last years stellar rise . Ok the indices are making lower bottoms and tops since Christmas or a bit after , so the trend is down but My logic was this remains ok until we have a break out in any direction .
The concern looking ahead is obviously oil , terrorists, elections, inflation , deflation, financial collapse ? plus probably a few more .
Now that the indu/s&p has found a bottom at the 59 day period and or channel support we see the indices climbing a wall of worry and something DONT JELL .
Oil is tracking higher , hurricanes in Yankee land will be expensive to someone or to all . Iraq is not revolved yet and could drag on for a looooong time .
How to play it ?
Be long with close stops or buy insurance on a daily basis and be prepared to reverse positions quickly if the last major swing lows on xjo/ spi / dow/s&p etc fail . Now we've had a weekly up break on some of the above it could be false break so losses can be limited quickly if the previous lows get taken out .
