Wednesday, January 27, 2010

Markets testing critical interim supports...

A little late for a 'lunch time advisory' post now, but there are still a few words to be said about the near-term situation.

EWZ at critical support:

Ditto for USO. Different pattern than EWZ, but still 'critical':

SPY's position might not be quite as critical as the first two, but it does seem that the fund needs to hold this level to avoid another five point (more or less) drop:

And then of course there is the recent pattern on Gold that has everybody aflutter.

In my very small trading account I was long the dollar and nippy and short gold up till 20 minutes ago. Did alright on the trade. I have a feeling that markets are going to embarrass me by aggressively moving in the direction I was positioned for. But then I also have a feeling that a temporary squeeze is around the corner. Trades get so crowded so quickly these days. So since I am feeling the potential for two different occurrences, I am 'in doubt'. And when in doubt, stay out. Right?

Or the closing of positions could be explained by how over-leveraged I was. Didn't want to bother with another equity drawdown, even if temporary, so I booked the profits I had.