HUI is now back below the 60 minute neckline and what we have here is a genuine whipsaw. This presents a good example of why I would like to be careful of injecting too much of a 'flash update' component into the service. Volatile and emotional markets can eat traders alive with these whipsaws, which is why my preferred M.O. is that of a sensible and ongoing plan that attempts to tune out the short term noise.
These macro news releases (ISM tanks the market today) often do not do anything other than intensify the whipsaw. Suffice it to say that the bone-headed stimulus policy unleashed on the economy is not going to work in any enduring and healthy way. If it works at all, it is going to work to enrich certain interest groups and hopefully, those investors with patience and focus.
So, let the whipsaw whip. Understand your personal plan and keep patience front and center. Let's put the 60 minute view behind us and keep our eye on the short term daily uptrend (still intact) and the SMA 50 as initial support.
