Thursday, August 12, 2010

Some trend lines broken

The Dow index has not yet broken its short term trendline. Other indexes such as the NASD has broken the short term trend. Although I am short the market, prudence says to wait until all averages have broken the line. Be patient! If the trend has reversed there is plenty of time to make a lot of money,. The danger here is for those who are long stocks to stay long and hope for the market to go up. They may lose a lot of money and it may take years for the markets to go back up. This is an important turning point. This is not a short term move. This is, at the very least, an intermediate move. This downturn will last for at least two months, maybe longer. Take action as soon as all the averages have broken their trend lines. This may happen as early as today.

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