The week ahead (June 3, 2009)

The day has been filled with mixed sentiment, overall the market needs to reveal a little more. Some traders could be away for the long weekend, as you can see there is a lack of selling/ buying in the 5 minute chart. So what will Monday be...?

Current Hot Topic that I am watching : Naked Short Selling Rules



I can only see two possible scenarios:
1. A snap back rally
2. Another gap down or selloff on Monday due to traders coming back from their holidays.
3. No buyers or sellers stepping into the market...hence flat day.




To turn the sentiment of the market from bullish to bearish is going to take some time, many traders are still afraid to short the market for fear of a snap back rally.

Take POT as an example. If the MM wants to play hard ball and confuse the market, how can they gain the trust of the market...? Will we see this in the Dow or Nasdaq....?


Another example is MA

In summary, the bulls and the bears could still be in a tug of war...Hence I will just take this a day at a time.