Not Shorting At All - Risk Reward Very Favorable For Bulls
Lets take the worst case scenario: the Gartley/Diametric. About 60 point decline in 4 weeks.
Now look at the best case scenario of the A + B = C. Potential 250+ point gain in 8 weeks.
Reward FAR OUTWEIGHS the risk here by more than 4 to 1.
Next 2 weeks will be key to this market. All of Wall Street is watching the 200 DMA. If that 200 DMA breaks (to the upside) is there a potential for a buy panic? There is one thing I do not want to bet against, and that is the 20 year cycle. The rally at the end of 1991 was powerful and vertical, and could appear again at any moment.
I'm currently about 70% long and watching.
Previously posted charts:
Now look at the best case scenario of the A + B = C. Potential 250+ point gain in 8 weeks.
Reward FAR OUTWEIGHS the risk here by more than 4 to 1.
Next 2 weeks will be key to this market. All of Wall Street is watching the 200 DMA. If that 200 DMA breaks (to the upside) is there a potential for a buy panic? There is one thing I do not want to bet against, and that is the 20 year cycle. The rally at the end of 1991 was powerful and vertical, and could appear again at any moment.
I'm currently about 70% long and watching.
Previously posted charts:
posted by chartblog at
9:27 PM
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