I wasnt refering to your post, thats why it wasnt quoted. I called out a ST top in oil last week and its now bearing fruit. This will be this weeks theme.
I also commented last week about oil being overbought. But I also think that the trend is still up and that oil will rebound once the Dow is up 200 points or so this week.
What is this prognostication based on? I didnt know the oil mkt and stocks to have a positive correlation as of late.
Oil and stocks are both growing for the same reason: Growth. This is one of the reasons why they have had a positive correlation for over two years, so this is nothing new. In a shorter time frame, the correlation is negative. When oil goes up TOO fast, stocks go back down, and eventually comes back up whenever oil retreats towards it's trendline. While this tug-of-war is going on, both oil and stocks are creeping up.
The saying is that the wagon always run fastest at the bottom of the hill.In other words just before there is a major turn in markets you will always see fast and "big" moves in the direction of the trend.Met by counter activity.So we will just see if the buyers can find sellers, to give them what they want.
Many, many bearish posts again over the weekend. Again this is usually indicative of market bottoms, not tops. Happy trading to all.
Exactly. Sept 20th looming as a HUGE trading day with volatility jumping to climatic levels. Fed does not raise: Huge rally, followed by huge decline Fed raises 1/4: mini-crash, followed by huge rally. Be nimble, BE QUICK !