Monday, March 24, 2008

Trend Change

Barring an unexpected selloff this afternoon, this mornings rally above last week's highs on all stock indexes confirms that the intermediate term trend has changed to up. I have exited all short positions and taken one new position long the QLD. The VLE and Tides systems will need one more day to confirm the trend change; however, the % change today on increasing volume meets the criteria of an O'Neil follow-through day.

While some profits were given up with the wild swings of the last 8 weeks, the market should be in the mood to trend for a while now given it has gone nowhere fast of late. Nevertheless, as always if the systems indicate a trend change we will follow the trend.

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