Smells Like a Top!

by Rick Ackerman

Wall Street went a tad crazy on Wednesday when a fresh splotch of drivel from the Fed hit the tape. Rather than focusing on what, if anything, was said, I’d suggest simply monitoring the charts, since they, not monetary policy, determine the stock market’s behavior each day. My gut feeling is that shares are very close to a short-able top, especially since Wednesday’s short-covering rally was caused in some part by traders who make a living throwing Other People’s Money at financial rubbish. If you feel they have acted recklessly, it’s a good time to place your bet. For detailed trading guidance, check out my latest tout for DIA — or click here for a free peek if you don’t subscribe.

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