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Posted by ZorTrades

Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker.

To Chase Or Not To Chase The SPY

by ZorTrades on October 27, 2011

in Stocks

After such a big gap up, such a strong performance for the month of October in what seems to be news that has been anticipated and telegraphed here are some charts you might want to consider in ultra short term (2-5 days).

SP500 after a 200 point rip, it is now testing its 200 day moving average;

Telechart McClellan Oscillator is now extremely overbought +330

Stock trading above their 20 day moving average now printing 92%

These charts should be taken into consideration for the next 2 to 5 days when the question pops in your head whether you should chase or not chase.  Also, the consensus is now that every one is going to chase performance, which can very well be the case, but I believe; the indices will rest here and individual stocks should start to act better and we might have less correlation.

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