Bulls in Control

Wednesday, August 06, 2008

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2 comments:

Mark Porter said...

What would getting to the 1340 target mean to you?

Name: Brandon Rowley said...

Well, it can mean different things to different players. For me, the active trader, it will mean to not buy highs as aggressively and not be as aggressively long in general. I'll be looking for topping patterns and possible shorts in various stocks.

For swing traders, it will be an area to take profits and look for a pull-in. It should cause the markets to pause at the very least and will stop fueling stocks higher.

For the investor, it means CNBC will be claiming the market is back, the bottom is in, everyone should be buying and the investor will get baited in and then have to sit through pain as the indexes pull back.

I could see things playing out as follows: we find resistance at 1340, pull back to 1290 to test previous resistance which should act as support and then we go higher.

We'll see, hope that makes sense.

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