Tuesday, May 3, 2011

Short Term Caution

The High Low Logic Index is flashing a caution sign as it has risen above the 1.00 level into the neutral zone.  This suggests that short term traders should hold off on new long positions until it turns back down in earnest (aggressive) or falls back below 1.00 (conservative).  After the recent buy signal on April 7, which occurred after a brief excursion above 1.00, short term long trades worked extremely well, but now it is time for a pause.

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