Tuesday, July 28, 2009

Taking Sock: Get Back In Sync

I'm trying to get back in sync with what the market is doing. I have to say that the rally really threw me for a bit of a loop. The CVI seems as though it wants to continue to the upside, but only time will tell. I think I bought a little late this time around, so I am looking for the next possible wave\phase up.

I'm seeing bollinger bands "hook" and start to contract on quite a few stocks, so the volatility squeezes are likely to be over soon, if not already. The only positions I have\had are\were plays on volatility squeezes with Average True Range (ATR) stops under them. All I am doing for now is mostly just waiting for the market to pull back, and making some trades with ATR stops under them. I didn't buy back in to any of the precious metals positions that I had, even though the dollar index (DXYO) has been falling. I'm sitting and watching those. They actually seem to still be in somewhat of a downtrend.

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