Quote of the Week (8/11/08) ~ market folly

Monday, August 11, 2008

Quote of the Week (8/11/08)

This week I'll throw a bit of a contrarian quote out there.

"When most people share the same sentiment, that is usually when trends change."

The rally we've slowly been mounting has been putting in higher lows as it approaches overhead resistance at the moving averages. I personally still feel this is just a minor rally within a broader bear market. For a trade, it makes sense to be long here if the counter-trend rally can breakout above the moving averages. But, then again, the overhead resistance we're about to run into could very well be the catalyst to send us right back down. I'll wait for a confirmation in either direction before I initiate new shorts or longs. This market is trading very tightly on technicals, that's for sure.