Thursday, June 7, 2007

Another 20 points profit

I hope you guys followed the last post of the blog. In the counting profits post I wrote :

"Today we got some sort of exhaustion pattern. I suspect this levels are quite dangerous for longs and prepare for negative bias if not today then next week."
Oh boy - It came strong and fast - as sells off are usually act. 20 points E-mini SP500 were taken. I decided to lock profits instead of letting the market to deceive me.

In the below image you can see the entry and exit timing.













So what's next ? First , the bearish bias is still intact though there are signs it might changed.

Take a look at VIX chart. For those who are not familiar with method - you are invited to take a look here - method was developed by Mr. Connors.
According to the method, an upside reversal point is expected. Pay attention that this method does not have 100% track record but usually gives you another reasonable vision of current market direction.




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