We are in no man's land as the market tries to decide its direction. There are cases to be made both ways but I will present one for a new and lower bottom than SPX 839: [more]
Asia is currently having another round of selling the rally. The Nikkei is down around 3% and the Hang Seng around 5%. Earlier today I noted that the follow through to Monday was the key to what lies ahead. Today's selling in US stocks from an early peak, the action in Asia, and the US futures bodes ill for the days ahead. [more]
Monday's rally was weak in volume but strong on points and breadth. The real tell is the follow through or lack thereof and the signals from internals. If we go down on higher volume than yesterday then watch out below again. Breadth (A/D) will also give a signal. The other thing to watch is credit market. If TED spread starts to narrow and continue that trend then the equity markets may be in for a sustained rally. [more]
It seems suspect that there was such a huge change in rankings even with a one day upswing. Some of the players vaulting upward had picks made all on same day. I find this suspicious and wonder if anyone else does. Someone going from zero points to over 1000 in one day?!?!?! I don't buy it...someone check the program.
For those following my picks I am beginning to cover my 2x inverse plays. My low target range was Dow 8100-8800 which has been met so I am unwilling to shoot for more. [more]
Not a moment too soon after getting a $700B slush fund, now the administration will directly inject capital into banks. For a price, or course, an equity position. Anyone else feel the danger in this? [more]
The Fed is now using up some of its last bullets to try to save the markets. Examine prior rate cuts and ask yourself whether they worked. They did not and will not. It simply makes for another sucker rally to sell into. [more]
The market has reached the recognition point. Everyone knows now what they had hoped against. Government cannot really help. All the king's horses and all the king's men can't put this economy together again. [more]
Should be working A-B-C corrective advance upward if the larger bear scenario is still working.
Advance to resistance zone at 1157-1161 will fill recent gap and provide a potential barrier to further advance. A great place to reshort is advance reaches and stalls there with a stop above 1161. [more]
I am a huge bear but we are seeing a possible low right now. This bounce down is coming with a high fear reading of near 45 on VIX. Don't go short now, wait for a rally.
Still overall bearish with lower potential left ... after each big rally.