This is as good as it gets for the week folks--markets actually pretty weak--apple`s i-phone was cool looking--actually interesting how one product can turn the entire market around--and it doesn`t even cure cancer/aids--but the gadgets were marketable--but once you get past the glitz--introducing this product which needs a high margin--when these devices margins are dropping like a falling knife--seems to need some digesting here--but I look for apple to sell off from here just like last year. But the pattern has been buying on the first two days of the week, and then the downward slope of the indices occurs. Actually, liquidity is being sopped up in all the markets as people are losing lots of money worldwide, I anticipate my 1400 s&p level being taken out this week. I also look for the selling to gain traction/momentum and for the market indices to all be down for evey day next week (no monday/tuesday buying/runnup next week). Even the ardent bulls have to admit that we have stalled right here, and no real selling has begun, in the next 8 days, we will have at least one of those days where we don`t bounce off of the worst levels of the day, which happened again today, and it will probably occur when we break key TA levels to the downside. But even with all of this nice reversal buying we are not moving appreciably higher, just stalled here, my contention is that the selling intensifies from here, and once we start breaking these key TA market metrics, all hell breaks loose, panic sets in, and we get some huge drops to the downside. http://stockcharts.com/h-sc/ui?s=.spx http://stockcharts.com/h-sc/ui?s=djia http://stockcharts.com/h-sc/ui?s=nasdaq http://stockcharts.com/h-sc/ui?s=qqqq I do note that the trend down in the nasdaq/qqqq`s has turned recently, but before apple`s (I-PHONE) news, the nasdaq was selling off down 14.00 today, so after the initial over-exuberance subsides, the downtrend in tech will continue, in sympathy with the other indices, in fact, tech gets hit hardest, once the selling begins in earnest, as high beta stocks like goog, bidu, rimm, aapl trade towards more reasonable levels of valuation.
http://www.nni.nikkei.co.jp/CF/FR/MKJ/ we are definately sopping up liquidity around the world....markets are going to sell off just as I proposed sunday night....we might have a "WORLD MARGIN CALL"!!!