So were we right to sell last week?.............. the answer would be Yes.
Bearing in mind that the market tends to start a festive season mini bull uptick (seasonal) about now we are mindful about remaining negative.if you followed our advice last week - you could have profited from a 300 points plus fall on the Dow - not bad for a week's movement.
We are currently neutral/speculatively positive.
The bad news is still out there but in order to capitalise on how markets think the festive period is knocking on the door.
Common sense says stay out of the market for now but the trading instinct knows its time for make a bit of profit.
If you do go long - programme a trade to take profits after say 50 points on the Dow - and take a fresh view after that on a daily basis.
All things being equal it would normally be a good time to buy but for now QE2, Currencies, Ireland and all the rest of the real world issues still remain a risk.
Happy Trading and Good Week.