No Cigar for Bears (once again)
Market Seems to have rejected first attempt down.
I return from a nearly 3.5 weeks holiday and I find things the same. Markets are strong and rejecting any attempts by bears. S&P made new all time high ensuring all major US indices (DJI, RUT and SPX) have made new all time highs and it seems now even Gold bulls have thrown in the towel and embraced stocks.
Until something changes it is fair to assume that trend is favouring long side. Here is 5 minute chart of today's day session:
I came in the day cautiously bearish, still recovering from my holiday fatigue and decided to watch the day instead of trade. I was expecting that if bears have power this time, after a huge down day yesterday, 1565 would be held as resistance. However, after initial reaction and establishing day session low, market shot up like a script and made new highs after new highs without looking back. This points to the strength of the markets once again confirming that the trend favours the long side.
During holiday my stock portfolio has become bit biased on short side and therefore suffering now. I am looking to balance it in coming days.
