OnIslandTrader's Blog : Sellers likely washed out for now

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For the original article with charts go to
http://blog.onislandassetmgmt.com/?action=view&url=sellers-likely-washed-out-for-now
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This isn't a recommendation to remove your hedge, but if you're a trader you might want to set up a short-term trade on the upside. The day is only half way through but the reversal already looks promising. Add to that the fact that the market's down 10% in the past two weeks, has sold off 8 of the past 9 trading days, and investor sentiment has reached bearish extremes. The odds of a snapback in the next few days are looking pretty good.

On top of all this, the US Dollar broke down today and looks to be setting up for a new down trend. This should once again help to prop up markets as it did throughout 2009.

We recommend using leveraged ETFs for quick trades like these, especially the 3X Russell 2000 ETF, ticker TNA. Make sure to use hard stops with these guys though -- they move quick!