July 23, 2009 at 12:44 pm | | Comments 0

Rip City – When Will We Rest?

Shorts are getting torched right now.  The extreme momentum we’re seeing is definitely of the emotional variety, although it’s been technically significant as well.

Today, for example, the NAZ is going for its 12th straight advance – an impressive feat which has brought about a 14% move from the low set earlier this month.

We’re very stretched right now to the upside in the short term, and yet there could still be more.

So the biggest question on everyone’s mind right now – both bulls and bears alike – is “when will we rest?”

The notion of a pullback after a move of this magnitude isn’t crazy.  It’s logical to expect at least some profit-taking after such a huge surge.  But we’re still looking for one.

And given that the technicals are taking a back seat to emotions right now, it makes it tougher to determine when a dip might develop into something a little more than just a 15-minute slide.

Fortunately, there’s one situation in play right now that could offer a sell signal for a quick trade.

Just a little while ago over on the trading videos site, I posted the following video. In it, I discuss this topic and offer a rare clue to watch for when it comes to expecting a little deeper pullback than just a few points.

Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.

Just remember to wait until this pattern confirms, because until that happens there’s still upside momentum that deserves the utmost respect.

Thanks for stopping by and I’ll see you here soon with more. Until then…

Trade Like a Bandit!

Jeff White

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