Boom Boom Stocks 7/5/2011 | Bulls on Wall Street

Boom Boom Stocks 7/5/2011

Evening folks. Amazing week in the markets last week.  What a world we live in where we go from market breakout to potential break of 200dma and flush back to almost new highs all in a matter of weeks.  Ive traded for 12 years and last week was one of the most impressive reversal/window dressing/pomo runs ive seen.  No matter the rationalization of why or what happened you got to respect the action….  you could see that people wanted this market to make a big run I could feel the programs kicking in on and off top ticking the market nonstop.  I dont have any predictions just yet..but i will tell you we are crazy overbought on all timeframes and in any indicator any guru uses to gauge the market.

look at this nonstop tick? no volatility just inch inch inch up. very robotic

the s&p almost completely out of upper bollinger. Think of the market as a rubber band and when you push one way to far it tends to snap back visciously. The bollingers tell me when something has gone too far to fast. its not the end all as indicators are used only to confirm the price action. But it gives me pause which is why I went 85% cash by friday end.

remember guys market shorterm is a bit cooked so be tight with your trades. dont take a nice gain and let it ride unprotected if market turns you could see losses pile up. remember rubber band you stretch too far the snapback becomes more and more powerful

email me kunal@bullson.ws if you have questions on these setups or anything else. take care

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