US Market has been trending down since 16 Nov 2011, after hitting the 1250+, the downwards retracement was drastic.
As I am not very confident in trading of US markets yet, I have subscribed to some websites on comments of the US markets. Some traders started to give target of 1210 for S&P at 2011 year-end, and some have target of 1370 due to triangle pattern. Though they have so different targets, they can switch from bear to bull vice versa anytime. In short, these website I subscribed are not helpful to me to learn trading. Perhaps I should document down my analysis in a blog to see whether my decision making process will improve.
S&P has been down since last wed for a week already. So, it may bounce anytime.Its below 20 and 50pma. It need to move up to 50pma to resume the trend, or it need to produce a while candle to stop the fall. Need to wait for while candle to confirm. Next level is assumed to be 116.4. To me, the small section of the chart is very similair to Mar to Jun section, but in a more "coiled" manner. Lets wait and see. On rebounce, I should buy Puts to keep. China is unlikely to have hard landing as the Chinese government wont want to see hard landing also. Oct 2011 PM is 48 which is highly unfavourable, I presume that the government will take action. The EU zone is a more problematic zone and nobody know what will happen next. The only strategy is to learn like those websites- switch from bears to bulls and bulls to bears anytime..:-). But how to do that???
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