BOUNCE - June 8, 2007

We are bouncing here.

I was set-up for it overnight by buying 1491.25. I put in a stop at 1486 figuring that the overnight low should not have been violated. It was, but I was not stopped out. I set my bracket orders incorrectly, so I totally lucked out and was not stopped out of a good trade.

I took my profits at 1295. OK, not the most profitable trade. But my strategy is to be Ichiro and not to be Barry Bonds. If I can just get on base a lot, I'll be mega-profitable over time.

So, we are waiting for the close. If it closes below 1294, then it is a bad sign and we are likely to move to a BEARISH regime. If it closes above 1298, then we are probably going to go back to the BULLISH S1 regime, if only for a brief period.

The LIQUIDITY MEME is still dominant so I think we'll have a recovery (although I am currently out of the market pending updated sentiment).