Hate To Be Right
Don’t get me wrong, despite having been a lone voice in the blogosphere as of late I do very much enjoy the fact that I was pointing up while everyone else was pointing down. And a lesser market megalomaniac would be temped to harp on that fact and attempt to belittle more frequently trafficked but continuously wrong trading blogs.
Rather, I have to admit that I hated to be right on this one – nothing would have pleased me more than a healthy market correction that would have allowed us to get positioned after a good ole’ fashioned pig shake out.
Our resident Evil Speculator market technician (shown above) is now getting a bit more cautious despite all that buoyant POMO cash abound. Although he’s not too worried about a major slide right now we could be facing a correction sometime in February:
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We could see a bit of resistance once we hit the 61.8% extension of the first ride up – that would be around the 1306 mark. If we breach that I’d get cautious starting 1335 and into 1345.
That copper divergence is also becoming more pronounced, which is strange considering that old bucky is still getting taken to the woodshed.
I really don’t have much confidence either way, but the trend is the trend and as long as the tape steams higher I am not going to engage in undue top calling. But I wanted to caution you guys a little – it’s probably best to reduce position sizes at this point. We’ve had a good ride and you the old saying:
Bulls make money, bears make money (sometimes), pigs get slaughtered.