Friday, July 15, 2011

Market Bottoms - July 15, 2011

Today is July 15, 2011, and the market action over the last few days suggest that the market might have bottomed. It is a very interesting time, and the corresponding rally can be very severe.

Trading Algorithm has given a partial buy signal, with a full buy on close above 1328 (SP500). Market has tried to test the bottom established 3 days ago, and has succeeded. Today is also with in the turn window defined by the Inflection Point Model. 

Finally, risk management wise this is a very low risk entry point. Therefore, you can place a stop very close to today's bottom and risk very small capital.

I will post indepth market structure analysis soon.

Note: This does not mean that market cannot go lower over the next few days, as the turn window is still active till next Friday. That is why risk-management is important and pays the greatest dividends.

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