My Funny Feeling Indicator Is Starting Go Off

June 2nd, 2009

Seems like these days there is a big movement type day followed by another flat day. So, on the heals of Monday’s big thrust higher and today’s absolutely boring action, will tomorrow keep us all on our toes with another big move in some direction. Personally, I am getting the feeling from different places that something big is coming down the line. Whether is good or bad – it’s big news that we have not priced into the market yet. I’m not a fortune teller by any means, but I do have my sources.

 

In addition, the VIX continues to fall which shows complacency for the current trend as well as sentiment indicators reaching extreme levels that in the past have signaled major tops. Given all the factors that professionals consider in the trading environment, I felt comfortable taking profits on one of our Long trades – CAL. From the chart below in Green you can see that it’s up over 25% during the 3 days that we were in the trade. No bad for 3 days of work huh?!

 

cal1

 

On the FOREX front which has been extremely active, the USD/CAD still looks like an amazing Long trade. Of course, we should all wait for a bullish candle pattern first before entering, but the 1.07 level where the Fib support is located is VERY strong. Could have huge profit potential if the dollar gains some strength.

 

cad1

 

Finally, at the risk of being a broken record once again, here is another AMAZING Short idea – DTG. I’m seeing these more and more often as I browse through my charts which makes me wonder what’s coming next in the markets. There was a reason this stock fell from $60 to less than $1.00. You cannot honestly tell me with a straight face that reason is now gone and this is going to continue higher…i.e. SHORT THIS!!!

 

dtg

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One Response to “My Funny Feeling Indicator Is Starting Go Off”

  1. The Bullz And Bearz » Blog Archive » Great Day For Shorts - Again, Trading Isn’t Rocket Science Says:
    June 3rd, 2009 at 3:35 PM

    [...] those old fashioned “funny feelings” that something was going to turn in the markets. Here’s the POST. Well, surely enough we have started to slowly unwind here. More and more I hear and people talking [...]