Trading Strategy: 2.3.11
The mid-term channels of the S&P 500 and the Dow Jones industrial average are well intact, and even though a break above 1300 has occurred it has not been followed by sustained market increases yet. If nothing more, a temporary pullback is likely to occur. Short sided ETFs like TWM and QID can work well in this environment. Sector ETFs like SKF and SRS can also increase if the market falls.
These trades have a downside target of mid-term up-channel support as those are defined in our combined analysis at Stocktradersdaily.com. At that time, according to the trading strategies we have set forth, becoming buyers of the market again may be wise, and a higher high may follow.
The immediate bias is short to support, then long to resistance within the defined midterm channel.
Good Trading - Thomas Kee.
Disclosure: I am long TWM.
Additional disclosure: I hold TWM in the proactively managed accounts I advise and have offered the information included in this article to clients of Stock Traders Daily already.