Last Friday, the 13th April was a day when we expected a large number of turns in various markets, as a glance at the current turn schedule here will show (it’s still on the front page too). US and other stock markets rallied to new recent highs on the day and have mostly backed off today, so we think the turn marked a high point within the trading range and we would now advise trying short sales again.
Range-trading is always hard to do, and so it is here. The range may widen or become quite erratic, so we wouldn’t risk much on this new short. It is worth trying though as we think there is a good chance that the trading range will eventually break to the downside and it is much more comfortable holding on to a short position adopted at the higher end of a trading range than trying to establish a new short once the range has broken downwards:
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
