Wednesday, July 28, 2010

Shorts Setting Up...

We had the confidence figures dampening positive opening of sp500 last night, but moreso technically overbought price action is leaning towards a downswing over the next few sessions.

ASX Market Breadth was mixed, with financials opening higher, and resources lagging. The intermarket indicators are showing the market turning points, Gold, Oil all down overnight, AUD is falling from the 90c market this afternoon, and it's a matter of time before the EURO rolls over in the next few sessions.

Thus I shorted the asx200, @ 4508.5 and expect some overnight movements too, as long as I don't get stopped out - the inflation figures came in lower than expected, which would normally indicate a rising price - but the global factors seem to be dictating the price movements today.

I also shorted 500 OSH, as it opened near the top of its resistence and with oil prices providing macro headwinds.