After todays 117 point rally in the Dow, the bear trap i had pointed out earliar this week looks like its on the path of reality. Todays move pushed price back up above the heavy horizontal resistance point around 12,750 which indicates that this was a false breakdown of support and the bulls could be charging for a strong rebound. Currently I’m neither taking a strong position in either direction in the market as im neutral. I think right now Cash is a safe place to hold your money and day trading this volatile market, if your capable, is where the safest bets are. For me to recommend buying or selling a stock the previous night with confidence its moving in either direction at this point is difficult. Theres too much uncertainty in the markets. So i’ll be trying to look for day trade setups for us to play in the meantime until i can get a better grasp on the movements of this shaky environment. Of course if i find a golden opportunity in a swing trade, i’ll hop right in.
