The market opened up again today nice gap open thanks to the futures. Then the sellers were all over it. The pump and dump alive and well.
Ready for the ole pump and dump, futures ready to rise. Gap open then unload. We can't have this to many days in a row. Maybe tomorrow we gap open and stay higher. Just seems to easy to keep doing the same thing over and over.
I agree. Too many have the pattern down and its becoming obvious. One of these gap ups will be runner, runner flush and hold but has to be an unforseeable catalyst. The rate cut pumping and "infusions" of money into the economy has failed the permabulls. Be nice to see all lower low's though.....
I trade the ER2 and its weekly chart and the S&P's weekly chart are telling us something (maybe?). Except for the brief excursion to below 1275 in January the market has down nothing except go side ways. Granted the volatility has been something outrageous, especially on the ER2, which is why traders love it, but really we have done nothing except go sideways. Look at that very symmetrical triangle forming in the weekly plot of the S&P with the weekly range steadily narrowing. This is a picture of a classic volatility squeeze forming and it would seem that we will breakout of the triangle before long, perhaps another week . I certainly don't know where we are headed, but if you forced me to bet i'd have to bet that we will break lower back to the 1250-1225 area that we saw in the summer of 2006. There would seem to be good support there. Also interesting on the weekly S&P is that man, or women, hanging by his toenails with his arms flopped down and his head at Sept 2007. I suppose that could be symbolic of whats going to happen to the republican party in the next election.