The Ascending Triangle

Briefly I wanted to pen a quick post here on what I am expecting to see over the next few days and my intentions heading into 2012. I’m visiting New York City for the first time and have closed all positions while I intend to be double fisting watered down beer, blacking out for another NFL game, and touring the famous concrete jungle (not a big city guy, so I expect to breathe a huge sigh when I return to laid back Canada).

Without dabbling too much into specifics as Jake, Cain, and others touch on the US Dollar and forex almost daily, I suspect we take a breather here or slight flag out and test the 80 level again. For equities this should spark another quick short covering bear market rally, which I hopefully embrace (see long term below). I think there is opportunity to enter the market, especially on gap down, on Thursday with the intention of holding positive positions with stops through the weekend (talking 10-30% invested long here). Obviously, I would not be a good investor if I didn’t advocate sizeable cash, or at least straddling, position bases in your aggressive portfolios. Below is my drawn Ascending Triangle formation that I believe will resolve in the bull trap of traps heading into 2012. Upside target still in the 1260-1300 area, and would begin layering into long term shorts at 1280, add in as we go higher towards (possibly if obtainable) 1340 highs. I will be working on my short allocation, especially how I intend to attack certain geographies, sectors (well financials is a no brainer…), and broken down companies with an incomprehensible amount of debt in a credit crisis or large economic downturn. This I intend to complete over my few days off around xmas.

With that simple and really not helpful post, I look forward to more of these. My life went through a career upgrade whirlwind recently so between packing, moving, and rearranging all my accounts it has been one hell of a month. Cannot wait to kick back, eat some holiday grub with the extended family and returning friends from around the globe.

Any NYC suggestions please let me know, will be staying in the Financial district.

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