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Monday, September 27

DOW JONES drops, traders await CB confidence.

Traders start to take profits as this week will be flooded with loads of economic news. Many stocks are in overbought levels, and with the many economic datas plus pre-earnings seasons, some investors would rather take profits than bet on these datas.

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A normal drop after a Bullish marabuzu. There is no confirmation of trend reversal yet. But it is apparent that stocks are obeying that trendline resistance level.

Only economic data can cause a drop in this crazy rally that has erupted since early september.

Financials are once again missing out the rally. BAC is back at $13.2. I will buy more BAC if it dips below $13.

LVS exploded above its resistance. Very bullish, but highly overbought.

Tempted to make bullish trades, but I think it is safest to wait for the economic dust to settle. Tomorrow’s CB confidence can give us a hint of what the week’s trend is going to be.

Happy trading.

Watching US STEEL, BAC, AA.

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