The market has been trending up, but very choppy. It just peeked its head above the high from 2 days ago. But FAS hasn't been going along for the ride. It has only made it about 1/2 of the way back from the high 2 days ago. I think FAZ is a good decision, since like it or not, everyone's watching financials for the market direction. Although I will say that tech is starting to exert its unfluence too.
I also noticed that yesterday, FAS went up almost 8%, but TNA, which is a long Russell 2000 small cap fund stayed somewhat flat. So I'm somewhat playing that the ratio between these two should close.
I second Haroki. I will also agree with you on the Russell 2k being ridiculous yesterday. The financials are lagging and I think that will be telling on the entire market sooner. However, be on the lookout for those crazy shoot ups, and trade with tight stops.
Volume is ridiculous all around. prices are just thrown all over the place. If anything, I'll probably be short going into the weekend.
Yeah it's so weird Eko... I bet most traders are just sidelining it waiting to see what happens with GM and the employment report next week.
I think they're actually waiting to see how the market holds into the close. I will not be surprise to see a sell off into the close. If you're a bull, you have every reason to take profit. Lower and Lower volume for the last few up moves. That is typical of the end of a bull run. Less people are interested in buying at that point. If you're a bear, you better have a strong stomach. The market can still run itself up on the low volume as it's been doing for the last few sessions. I'm just sure that both professional traders and non-pros are confused about this crazy market. Haroki: What do you think about the resistance around 912 on the S&P, and the resistance around 497 on the /TF (It seems like that resistance actually dropped from 500)
912 seems reasonable for today. I've been looking at this longer term. I see a flat bottom pennant forming.