Oh, Miss Market how you torment me so! Does anyone have a model out there that could have predicted today's action? Ours certainly didn't. But we are all about trend and momentum, and one day does not make a trend. It was a sweet day, but we need about four more of them just to get even for the year so lets not get too excited. The next few days will be important to see if trends are reversing.
Looking to tomorrow, the good thing is that our slow/long term momentum was abruptly arrested and pushed back into the neutral zone by the force of a huge reversal in our fast momentum indicator. We saw the fast momentum sawtooth a few days ago before the latest down draft. It will be very important to see that momentum indicator keeping moving upward to solidify a new case for the longs. Don't get too excited just yet, until proven otherwise, this is a market more likely to go down than up. Lets get all three momentum indicators pulling to north before we jump back into the long side heavily. I know I said yesterday to act when two turned north, but I wasn't expecting this dramatic action.
Now check out our Top 25 Lists and TradeWinds Blackbox update to find out how today's action shook things up.
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