Monday, December 18, 2006

Brett Steenbarger Market Synthesis

Brett put it nicely here:

Bottom Line: I took an initial core short position in the indices when Friday's morning rally could not sustain new highs in the Russell and led to a drying up of buying over the course of the morning. If that position is sound, we should stay comfortably below Friday's highs. I continue to be impressed by the lack of participation in the most recent highs, with new 20-day highs well below the levels from earlier this month and new 20-day lows above 500. As long as the rally doesn't broaden out, I think we could return to that old value area in the ES in the mid 1420s.

Brett also added another article to his Trader Performance page.