Back to Top

A bit of pullback

Posted on 11/29/2016

Markets reacted extremely positively to Trump election. As you can see it resulted in huge asset allocation back in to stocks and breadth jumped from negative to positive.

Rallies seldom go straight up. Once breadth becomes extremely positive there tends to be pullback or consolidation. We are at that stage,.

If the rally has further upside then the pullback/consolidation will be orderly and will be aggressively bought.

Situational Awareness

Posted on 11/09/2016


Based on breadth trends market is in downtrend for few weeks.  
There was a bounce in last 2 days.Overnight futures are down.
Personally I will see how the market acts in next 48 hours before making any big commitment.
So far in last 7 to 8 years markets have recovered from such selling.
I will watch for breadth thrust to signal change in buying or selling.