I played the bounce of the 200 ema as well and then took my profitable trade and went back to cash. Why does the chart look ugly? Perhaps I overemphasized my comment, but...
1. We have a bearish engulfing candle the day after a huge up day. I am going to unscientifically attribute half of yesterday's rally to short covering.
2. We have the 20 and 50ma's over head and were repelled off that area.
I will go long if we make a W bottom here. The whole subprime meltdown and the ensuing credit crunch is not a blip on the radar and after the ECB's 100 billion + loans to member banks yesterday, not a problem contained to the US. Houston, we have a problem. And with the number of arms resetting on the increase the next 12 months, the problem is only going to get larger.
This looks promising, but I buy when the RSI 10 turns up or to be safer now, breaks the 30 line. We are not there yet.
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