Tuesday, February 23, 2010

The Kirk Report

The Kirk Report

Catch & Trap

Posted: 23 Feb 2010 03:55 PM PST

On the 10th day, Uncle Russ ran out of luck.

Russell 2000: 10 Day View

Everything that seemed to be working in the bulls favor was absent in today's session. And, frankly, even the most novice of chart readers can probably easily see the head and shoulders formation starting to form on the daily.

But, just like one day doesn't make a bull market, a one day pullback following two weeks of gains doesn't either. We'll need to see fledged beat down as today's action only pulled us back to the bottom of the upward trend channel. If you're going to catch and trap the bulls and the "buy every dip" momentum chasers, we will have to see a lot more pain than this. A lot more!

Read more of my after-hours report.