It’s tough to guess which way the market will go this week, so I won’t make any big bets in either direction. While the bulls did a fine job in terms of price action, what we had was a “V-ish” move toward resistance on light volume. That’s not bullish.
So you’re probably thinking I’m going to say it’s time to short. Well, it’s not that easy. The light volume could just be the pre-holiday effect, with Labor day right around the corner.
I’ll probably hedge and play a few shorts and a few longs. Here are two of my favorites; one long and one short: