The market is so bullish, eventhough there was a string of bad news in the past week, the market managed to hold its gain. There are many reasons for this.
1. Investors want to close JULY with a strong finish so as to spark a bullish August rush.
2. Market players are closing their short positions ahead of the weekend.
3. There is bullish momentum that has not fade yet.
4. Good Chicago PMI
SIGN OF WEAKNESS
1. DOW did not manage to break through the resistance.
2. DOW Future was whacked downwards sharply on Friday.
3. Economy data showing weaknesses. Weak employment numbers, weak housing reports
4. Technicals showing a dip to 10200 is highly possible
Recommendation
1. Take profits first
2. Place small short positions in HYPED up stocks, such as CHIPS – SNDK, casino stocks –LVS, Metal stocks – AA, X, MT
3. Quickly close those short positions once they have turned profit
4. Wait for the AUGUST RUSH to start, might happened in the 2nd week.
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