Move Fast or Step Aside
Last week's selling brought in some more bearish Arms Index numbers, especially the reading of 3.06 last Tuesday. The result was to push the shorter-term moving averages to oversold positions, setting the stage for the rally on Monday. But keep in mind that the big entry will be replaced today in the five-day moving average and will disappear from the 10-day a week later.
So the oversold condition is not likely to stay around very long. I would expect some more strength as the oversold is eliminated, but do not look for a big enough rally to be tradable by any but the most nimble and those who are most willing to accept the risk....278 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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