Tuesday, December 7, 2010

Also Buying SOXL as an intraday Hedge

Semis have long benefitted from low interest rates and a week dollar, this is a hedge on broad market strength and will be closed if the market comes back down.

Why would the market come back down? I'm not sure it will today, but this is what a momentum reversal looks like.
The wide candles are big upside momentum, fading into smaller candles, then we have a negative day, the next day a big gap up on the open with a close below the small star, "A Key Reversal Day".

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