Hitting Some Downside Targets
In Tuesday's column, I highlighted some downside targets to offer some possible buying opportunities. Two out of three were hit yesterday, so I did some buying. This morning, as the market gapped up and most averages took our yesterday morning's highs, I felt pretty smart. But now, as the market backs off to fill the opening gaps, I am a bit less thrilled. Still, as long as yesterday's lows hold, the pattern that I was looking for will remain intact and I will continue to maintain moderately bullish positions, which are now up to 45% invested levels at Rydex.
The Dow was the only index to score a new multi-year high last week. On Tuesday, I noted that the "prior multiyear double-top high of 13,330-13,338 in the Dow isn't too far below today's lows. That would mark a pretty good retracement objective and I'll add to my positions if it gets there." Yesterday's low was just below that range at 13,328. That retracement was pretty much what the doctor ordered. Accordingly, I did some buying as the previous double-top was probed. This morning, the Dow popped 100 points from that low, but since then it's backed off to fill the gap. Maybe the filling of that gap is all it's going to do on the downside -- maybe....401 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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