Strategies for Short Term Traders: Fund Managers Rush in Where Savvy Traders Fear to Tread
Over the past two two weeks, the beginning of the great bear market of 2011 has turned into a runaway upward market with funds managers now scrambling to get money to work – along with short sellers running for cover.
The market is overbought. I’m writing this a few hours before today’s jobs reports which will likely dictate today’s direction. There are still many funds that are underinvested and trailing the averages (and this is how they are evaluated) and they’re beginning to panic. It wouldn’t surprise me to see more buying coming in but, overall, with the market this overbought, a pullback is due and likely very near.
The above is from Larry Connors’ Daily Battle Plan.
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Larry Connors is founder and CEO of TradingMarkets.com.