We got the bounce and hold that we were looking for in Friday's action. Now we want to see some follow through at the first of the new week.
Friday gave us some encouragement with a strong day and most importantly a strong finish going into the weekend. This had the affect of turning our Fast Momentum indicator to the upside and moderating the down slope of the Moderate and Slow momentum indicators. Since we are way oversold on both the moderate and fast momentum indicators, we could see a nice bounce if we get some follow through long side action.
We had a lot of eroding of our sectors during the week, leaving us with only 8 sectors still in positive TradeWind waters, 14 in neutral and 18 in stormy negative TradeWind waters. So while we are seeing signs of some short term strength, don't get too excited or let you money sit for too long in a long side play because this background strength is still iffy.
Happy Trading
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