Dow: Tiptoeing along the razor’s edge.

Posted on Nov 14, 2010 by in Letters

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&b=5&g=0&id=p75064008702&a=203281655

Friday we looked at the market after a six day down wavelet and considered (for trading purposes) whether to sell.  So we wound up increasing our position in the SPXl and in the Qs.  Monday we may be sorry,  or not.  But one way the week's action may be regarded is as what old time technicians call a "throwback" -- that is a return of prices to the breakout line.  There is of course the market fact that five days down in the market is a (at least) temporary buy signal -- in normal times, if there are any of those left.

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