Wednesday, July 30, 2008

7/30 - signals

So what would have to happen to make me turn bullish? what about being more bearish? Here are ideal signals in terms of switching my stance to a bull or adding to my confidence as a bear:

ideal bullish signal:
- DJIA ends the day about 120-180 pts higher and closes near its highs (with spx acting accordingly) on higher than average volume
- USO makes a lower candle with high volume to confirm the breakdown of 100 level.

ideal bearish signal:
- DJIA ends the day 120-180 down, with a nice long shadow on top and closing near its bottoms (with spx acting accordingly)
- USO makes a bullish engulfing candle on above average volume

neutral stance (all cash):
- SPX off highs but above my 30" MA on its pullback today.

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