This rally is starting to suck enough people into long positions i.e put call ratio showing a bullish bias that a good round of selling isn't far away. To get a real good long squeeze you need enough people long that when the selling starts the gate is narrow and panic enough to cause a good short. I don't know when but I'm starting to close my longs and sit on my hands a while.
boys an girls .. the time to short will arrive, an it will be easy to spot coz the market will be going down .. for now the market is goign up so one has three potential positions .. long .. out .. wrong ..
Hmmm..the top must be very close IMO.If you not in the market,better to stay out and wait for the trend to reverse,to go long now would be crazy as the downside potential far outweighs the potential upside,since most of the top 40 stocks have rallied 25%+..IMHO.
Simon is right I'm talking shorter term. As I day trade the alsi I make most of my money being right in the short term, long term guys still have long signals. I'm looking for short term pull backs to make money. I did sell my shares however and will get back in at better levels.
JSE is currently demonstrating one of hte strongest bull run signals I know, big upward stabs followed by sideways consolidation (usually within the last big candle). These patterns are extremely resilient, and can stick around for a long time with no discernable or tradable downside.
Who knows where this will top out....more data out tommorow and that could start the slide. The Dow has just about reached its first Fib retracement from the 2008 Q4 peak to the bottom of the crash. Looking at some of our big boys, Billiton has nearly retraced to the 50% Fib level from its highs and is running low on momentum. The reality is that we are still going up and evn when the correction comes how large will it be? Technically we are seeing massive inverse H&S patterns on all major indices pointing to even more upside after a short correction. I hate trading counter trend....selling this market gives me the heebies and yet its to high to enter into if you are out. Best option if you are not in long is to sit and wait.