Nice wedge on the US Stock Indexes. I don’t care, take your pick: Dow, Nasdaq, Russell… from my view of the world, it’s one and the same. But, looking at the journey from our top in October 2007 to our low in March 2009, we are about halfway home… not quite though… and take a look at the gorgeous wedge that has come together here.
It’s Sunday evening and the futures markets are testing Friday’s highs. I love it. That’s encouraging for the bears in the neighborhood. I’d be looking at an opportunity to catch a short on the equities Monday through Wednesday of this week. Of course, a big part of this observation has to do with the risk/reward. Although new highs in equities is somewhat hard to imagine, new lows in the Dollar isn’t. So, as always I’m quite likely wrong. So, if you find yourself short the market and hitting new highs, get out. Big picture: this looks like as good a risk reward as you could look for on a trade and the markets are heading towards halfway home… perhaps it’s time for a break.
