Thursday, June 23, 2011

The market recently behaves as it was expected within a downtrend. It had a big spike to the upside that squeezed shorts and caught underinvested longs by surprise, and then a fairly quick failure on poor news flow.
The thing to keep in mind is that despite the strength on Tuesday, the market remains in a downtrend. Technicals favor the shorts.Strength should be treated with suspicion. Be careful.

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