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AdirondackFund (< 20)

December 2009

Recs

15

This IS the Top.

December 20, 2009 – Comments (23) | RELATED TICKERS: DOW , DNDN

You're probably tired of hearing this already, but the evidence has now mounted to the point at which stocks have no place to run or hide.  All angle lines of support have become resistence, all oscillators and summations have been exhausted....and there is nothing left to do but fall in price from here.  Even the Santa Claus Rally, much ballyhooed, has now also run out of time.  No one will be waiting to see what will happen on the last day of shopping before Christmas and the performance of Retailers this year will prove God awful...as expected and covered in an earlier post about Macy's and retail in general.  There is probably one more chance at getting stocks sold and shorts and puts attached to portfolios, but that chance will likely end early Monday morning as part of the continuation bounce from last Friday's close.  The rise in volume on Friday was the last missing piece in the puzzle as 480 Million shares were traded on the NYSE as compared to approximately 200 Million per day, on average.  That's a bit more than twice daily volume and shows that investors are already looking to bail  They were just waiting for their Options to expire.  The best place for insiders to hide volume is during Expiration Week, as the 'alibi' is already built in and volume is expected on these trading days....but which volume, and in which direction?.  Whenever stocks rally to a 50% retracement of previous losses, whenever angle lines of support are broken, whenever market breadth turns bearish, and whenever volume rises significantly...look out below.  These events rarely occur simultaneously, but when they do they spell real trouble for share prices.    [more]

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