Entering text into the input field will update the search result below

TAM's Pedagogics - Monday 03/28/11

Mar. 28, 2011 7:43 AM ETSPY
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Since the Markets’ top on the year, the 2/22 2%+ selloff Monday, they have shown 7 distribution days.  As for accumulation days, there has only been 1 for the NYSE and Zero for the NASDAQ (not including the quadruple witching two Friday’s ago).  When the Broadening Wedge formation arose and the intermediate-trend (IT) was broken, we discussed a potential low-volume retest to confirm.  Friday was just such a day.


If the Bears are going to remain in control of the short-term trend, now is the time.  If not, like we penned late last week, the retest of the intermediate-term broken trends would no longer be valid and the Bulls will have a shot at redemption. Nonetheless, our camp is still pitched with the Bears as 3 of the 4 Sisters hit the underside and held; all except the Russell 2K – she managed an intra-day breakthrough, but managed to close just below.


Experienced money-managers, investors and traders know that the risk reward trade is what it’s all about.  This couldn’t be a better place to be.  Since the break we’ve positioned ourselves short, hedged the bounce and are ready, at a moment’s notice, to relinquish the hedge strategy and return full fledge Bear.  If the probabilities do not hold and the Bulls return, we’ll remain short-hedged until clearer skies arise. Moral of the story, do not attempt to predict what the market is going to do; rather ascertain probabilities of what is going to happen and position accordingly.

SPX/SPY Daily:

SPX Daily

NDX/QQQ Daily:
NDX Daily

Good Luck & I Hope this Helps!!!

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.