Stock Market -- Short Term

Yesterday, my charts showed a strongly oversold market on some measures. Moreover, the tape
had bullish implications -- strong "Black Friday" sales, a prospective IMF plan to provide low cost
credit to Italy and Spain, and a flurry of EU activity to tackle the worsening crisis. There is a large
PIIGS + Belgium debt calendar this week, so it figured the EU would try to help its sovereign credit
markets. But, I decided to let it all go, because the markets lack stability in general, and the last two
rallies in the stock market show descending tops. Moreover, the oversold was not quite deep or robust enough given the unstable market conditions. $SPX chart

So, if a rally is underway, I'll have to join up with it at a later date. My fundamental view leads me
in a similar direction. One of the essentials to sound fundamental investing and trading is to keep the
approach as simple and direct as possible. My basic approach has not worked as satisfactorily as
it should in recent months, so it is time to rethink it.