proactivetrader

Keep Your Seatbelts Fastened - It's Gonna Be a Bumpy Ride

Short covering always acts as a cushion in a bear market. We are in a short term selling cycle, in a bear market and that will take us into Oct. Yes we are having some unusual bounces, but it is still a selling cycle that will continue to test the bottom of this market. It ain't over until it is over. And this market is far from finished with the current short term selling cycle. If you would like to see our chart signals that will tell you when it is over, and we are ready to start the next bounce up in a short term buying cycle then just email [e-mail] I will send you the annotated market charts. This call for a bounce up is just pre-mature. The existing bottom of this bear market is seriously in question. The next few weeks will determine whether it holds. Watch out. This is hurricane Ike coming at us. According to the Traders Almanac, Oct. is a bear market killer. But at what price? Our major signal on the SP500 turned bearish last year and has remained so since then. You will see this on the chart I send you. Any short term, next week bounce, will be a sucker bounce.