Good point. If JReynolds (or his other personality Stcktrdr3) post trade specifics, it would be much more meaningful. Even if they lose money, I'd have more respect. I tend to agree with shorting rallies, but where? Is this intraday or swing? For swing, an ideal entry is around 1380 (if it ever gets there) IMO.
1380 is so obvious as the S/R that it's unlikely to pay (either as support or resistance). To take the most money out of most people, the market would need to cross that level back and forth with large enough margin above and below. Therefore, it's going to happen. Then again, if "most people" are playing 1380 as the resistance, then the market would simply make a straight shot above that level and never come back. Either way, it's not about the 1380 level, but about how the big money decides to move around it. I am personally long all the way to all time new highs, and quite possibly well beyond that. The spread between the S&P earnings yield and the 10yr bond yield is enormous by all historical standards.
Let me tell you the facts. The fact is that you guys love me, admit it. I read all your fan mail. Another fact is that tommorrow will be another blood red day. Im shorting the market today and we'll go red tommorrow. Support is now resistance.
Microsoft profit rises 79 pct Thursday January 24, 8:25 pm ET By Daisuke Wakabayashi SEATTLE (Reuters) - Microsoft (NasdaqGS:MSFT - News) signaled confidence to a rattled stock market by raising its full-year earnings outlook above Wall Street targets and reporting a 79 percent rise in quarterly profit on Thursday.
Technically, this may be possible, but this is recession-obsessed market that's really watching the fundamentals. Once this bailout/handout euphoria is finished (with the Fed on Monday), traders will have to go back to seeing declining growth, slowing earnings (for the most part) and more credit problems. There were only 2 major U.S. releases this week, and one of them (initial claims) uses some fuzzy math. It was a great week for a cut and stimulus package. Wait till the news spigots start spitting out data over the next few weeks, and we'll see what this rally is really made of.
I believe the current rally is the final struggling of asset management company.They do this to restore the public's confidence to avoid any possible withdrawal.But it is useless because some hedge funds have accumulated extra much short position on some resistance point.So,let's see how it goes.