Friday, May 21, 2010

Blood on The Trading Floor

Do you feel blood? It took about 2.5 months for S&P500 to rise from 1050 to 1200. It only took about 1 month to reverse the whole gain!

Based on daily charts, the US market indexes are almost at the oversold position. This is a panic selling because every asset class except US Treasuries are being sold intensely.

I believe that a rebound is imminent in this few days. I interpret this mini-selling as just a normal correction. The real one will come later.

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