Friday’s trading day was a game changer, the last hour rally was not one of just a short squeeze before a weekend but one that showed that we are now trading in a triangle formation and we could potentially break to the upside. I, However, suggest people play the triangle formation before getting all that bullish. The reason i have more inclination to the bullish side is because a triangle formation after a rally is usually looked upon as consolidation and the next move is usually a breakout to the upside, once that happens the market can shoot to the 1030-1040, and that will probably be the end of Primary wave 2, before a new bear market begins.
Futures Alert: Down
Asia GSP took a crap
SSEC down broke below 3000
Hang Seng taking a crap
Nikkei as well
TOmorrow we gap down and -150 to -215 Dow
Hello 985 SPX
oops i meant ASIA GDP took a crap.
I agree.. we’re going to gap down huge in the morning.. damn, I wanted a bounce first to load up
Sorry but that triangle looks too big to be true unless it bursts to the upside to confirm a trend change. I have been doing the anti-bull thing as of late by buying the bounces, and I must say it is working out great. I won’t even get into how nice Friday morning was after holding through Thursday. I am currently short BAC SPY RIMM FCX SPG and long SKF. Yes I held over the weekend, and if I am not green in the first half hour I will cover them and look for direction. My target for this correction has always been 985 SPX to review further trades, and I am sticking to it. All these are in options mainly front month and Sept. However, I do hold BAC shorts out to January.
Happy Trading
OX
As I indicated before, all you saw on Friday afternoon was a little protective short covering going into the weekend, I don’t think it was worthy of reading into anymore than that.
It was a little ST short covering, some dip buyers and most of all it was those anticipating EOD short covering-POMO buying, and thats all it was, IMO. Look at the last 1 minute bar on the SPY. price gapped and closed up 2 points on only 360K shares. I was stalking this last minute rally and shorted heavily in the last few seconds for the second straight day.
IMO, rally is over for now, my strategy is to sell /short rallies, especially EOD rallies. Now that eveeryone anticipates these EOD rallies, they will stop continuation next day, and more likely gap down instead. Short interest is at a 10 year low, I interpret Friday as a distibution day, MACD has crossed over and SPX is below par SAR.
Idan, If the markets opens at a gap-down that is below the triangle in your video, then what do you think the chances are of a back-test to the bottom of the triangle, (around 1000) happening first, before a breakdown? Or do you think this big down day will spur panic selling straigt down through the week? Your opinion ? Thanks for all your sharing and great work !
asian markets are bleeding big time
Wow, they sure are. It’s about time to see some limit down days..