Monday, November 4, 2013

Never short a quiet market?

There is a saying in the speculation trade that one should "never short a dull market". This refers to the distinct probability of a short covering rally caused by the bears themselves.

There also is in technical analysis a probability of a rising wedge price formation to have a sharp selloff. Particularly if the rise is on below average or declining
g volume. I suppose the saying for the broader market could be "never be leveraged long in a dull market".

Today is a very dull market. The Russell in particular, although up, the volume is low. So far.
One hour to go....
Chart below

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