Tuesday, December 20, 2005

Russell 2000 is still in consolidation

Russell 2000 closed just right above the support today after going below it during the morning hours. We are still in bull bear fight , bears have been the gaining upper hand during the past days(or last 3 weeks) during which the market went no where and then suddenly in the last days it went down as if the pillar holding it got struck down. We need this type of shock and fear (or awe) in order to scare the optimists and the fearless and recently converted bulls.
I still expect the market to clear this range and go upwards,but if Russell2000 goes up a little and takes out the next support at 661, i might reverse my position, until then it's a risk holding long stocks. But reward is for who takes the risk. (just on the side , i have a little fear too).
If the market want to go up, it's going to be a big fight since a lot of over head resistance lies ahead.Patience is the medicine that's needed.
As mentioned in my Dec 06 posting, the market is range bound and is showing some signs that it may be positioning itself for a little move higher.

"Merry Christmas"
"Love is the greatest of all the gifts" .

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