The 910-920 level that I was looking for to hold, got zoom through as if it is not there. Then in the last hour of RTH, the top 920 act as a wall. I am thinking now - maybe, someone intended to bring the market to a level for accumulation, as oppose to real panic selling. Last time we have a directional sell for 3+ hours, that was liquidation by one of the big hedgies ... and we learnt that only a week later. Not sure what it is today.
http://finance.yahoo.com/q/bc?s=^GSPC&t=3m&l=on&z=m&q=l&c= Any one else see the larger inverse head and shoulders in cash ? If 890's hold here then we are blasting to 1100 on the next move up. Dec option interest say it is very likely.
But that's the whole crux of the current malaise. Everybody, including you and me alike, not only expects but demands that this damn market to rocket higher. Being a perpetual noob that I am, I'm beginning to think otherwise. Just my otherwise useless 2-cents. Can anyone elaborate on what the hell this guy is talking about? Not to cannibalize on my own usual cynicism, I find my own system not too different from what this guy preaches, or so methinks. So just where is this divergence that he's speaking of? Lastly, I don't ever recall posting my daily profit (in terms of monetary value) on this thread, so WTF is he talking about?
I know nothing about this, but someone said this today and I quote: "The accoutants are running the market. Long term capital gain selling before Obama raises them. It has to run its course. It is selling spured on by tax implications is my guess" To me, as of today and tomorrow: long term trend is down under 1180 mid term trend is up above 890 short term trend is down under 985 Since we are close to 890 area, I guess that is the level to pay attention to.
Well so far the market has done more or less exactly as I expected, but the character of the moves has been a bit different. After the move to 940-960 I was looking for a step down to 880-900 before a rally to the 1000 region. Instead we moved straight to 1000 without letting off that steam. IMO, this is why the sell-off for the past couple of days has been so severe. I've added to my long positions down here and will be fully deployed in a day or two, so long as 880-900 holds. My targets are roughly when we hit 105-107 on SPY when I'll start adding to shorts.
Ask yourself, who is left to sell after a -20% down october? The weak bulls are out and that only leaves the smart money and the greedy shorts. I'm not saying it will stick long term but with a little heat, you will see shorts drive this 100 points over the previous reaction high as long as the 890's hold.
Cliff notes Just 3 points a day on 40 cars will net you 7 figures yearly with the right r:r and discipline Or as my friend Porgie would say. Up the contracts not the points.
Wow, we're back @ 920 and it's barely midnight. I want to short these levels but I don't like to hold overnight without actively monitoring my position. Last time I did such a thing the damn future went limit-up while I was short. That being said, I don't see how we can go higher with such a gap below us. Markets have shown to be less forgivings of gaps under us than gaps above us.