Tuesday, February 15, 2011

Waiting For Confirmation

We are waiting for a close below 1311.74 to confirm that a top is indeed in place.  It is premature to call a top, but even if yesterday's high isn't the top, I think it would take only one more retest of the high to finish it off.  We have a completed wave count, very low volume and bullish complacency.  All the ingredients of an impending change in the trend.

For those who may not go back and look at previous posts for comments, there was a question about the results  in my post from January 1 - A Look At The IBD 100. I used a hyphen between the numeral and results which some may have interpreted as a minus sign.  All of the results were actually positive. However, the point of the post was that using the IBD 100 seriously underperformed using the top 10 relative strength stocks of the Russell 3000.  Regardless of your trading strategy, one should not blindly accept a list of "top" stocks.

No comments: