Disclaimer: For education/entertainment purpose only. Invest at your own Risk
On Friday, the Dow Jones Index closed at 10,989.00 wich is down 30 points from the previous close at 11,019.11
The Dow Jones Index is in a No Man's Land...Neither bullish, nor bearish. It is just chopping around.
It is frustating during choppy markets, but we just have to wait it out till the markets indicate a proper direction.
The whipsaws that are occuring now are similar to what occured when the bubble burst in 2000. Stocks would go down, set up for short trades, start to go a little lower, and then the markets would get oversold or a news story would come out and suddenly they all turn higher and rally significantly - to the point that you have to cover your shorts for a losss.
To be bullish, the index has to cross the 11,200 to 11,300 line.
To be bearish, the index has to move back into the downward sloping bearish channel.
Let us wait and let the market tell us where it plans to go next.
Then we will make our move.
Till then, I plan to stay in cash.
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