Posted at 5:00PM
Today we saw a little bit about how important the channel is. Even though we opened below due to concerns from Europe and of course the escalation in Korea. The market bounced back managing to end with a strong green candle above the Channel formation. Things look bullish into tomorrow, but once the bears break the channel, be very careful, and make sure you’re short.
It was a technical bounce on a very important area of the weekly chart of the SPY not only a weekly pivot but also a retracementm of 100% of the rally ignited 4 months ago.
From my morning post.
I’m expecting a bounce if not later today as soon as I see evidence of selling exhaustion maybe starts tomorrow on the SPY since it has retraced 100% of the past 3 month rally and technically greater than 100% retracements gets a technical bounce to short 30 to 40% higher and the wave continues in the direction of the monthly chart………..
But the tie beaker is the rest of the world news so stop loss required if wrong.
just for entertainment folks this are times that require a trading plan and conviction………
Very, very, very x10 important point because the markets being oversold in the short term and amateur traders shorts this late and they get turned in to short covering rally fuel for some days.
This is actually a BULL TRAP no more than a month ago the bulls were very happy feeling immune to any bad news and now look at the violent drop having most bulls trapped at the top unable to sell. I personally don’t think we see the markets trade over last month top maybe until November if, I hope sooner so people can sell for a good profit and rethink their future in the markets.
make sure your short? what time frame are you looking at?
do you really think by 2011 we’ll be lower than 9000 instead of higher than 11000?
I think we are lower than 9000 if we break the channel i drew.
Well I’m biased cause I’m long.. so ignore me :p
I guess we’ll see what happens.
I still think short LEVERAGED funds is the way to go…
GL.
Well, you might be right! The thing is, as long as we remain in the channel, you should be bullish. If we break below, then i can’t be.
I sold short 10000 shares of FAZ at the close, covered at $15.67 and made $3,300 for the day.
Cramer is calling for dow 9000.. since when is cramer right?
common guys.
one thing thats interesting..newsweek had an ipad magazine cover.. appl will top in the next 6-8 months.
http://www.newsweek.com/id/155132
In earlyMarch 2009, Cramer was calling SP500 would down to 530. Terrible calling and scare a lot of funs enter at bottom.
Here some bearish opinions by Today’s MarketWatch:
Correction? New crash imminent, worse than 2008
More proof: Earlier economist Gary Shilling said price-to-earnings ratios are at a “nosebleed 22.5 level.” The Dow was around 11,000. Money manager Jeremy Grantham recently said the market’s overvalued 40%. That could mean a collapse to 6,600. Last week in Reuters’ “Markets Could Be Derailed Again,” George Soros echoed a “game over” warning with a “stark warning … that the financial world is on the wrong track and that we may be hurtling towards an even bigger boom and bust than in the credit crisis.”
Now Dow Theory’s Richard Russell is warning the public of an imminent crash: “Sell … get liquid … by the end of this year they won’t recognize the country.”
Who is good for AH forecast:
Monday AH, a lot of people buy SPY and IWM, Market drop like hell Tuesday Morning. Tuesday AH, a lot of sell, and AH SPY move up 0.8%. Tomorrow morning can be a gap up?