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IBDvalueinvestin (98.48)

Classic Bear Market Trap.



June 17, 2011 – Comments (5) | RELATED TICKERS: SPY , QQQ , BB

This folks is what you call a classic bear market trap. The market soars on a friday of options expiration on political comments not actions.

When you wake up Monday morning everyone will have had time to digest all the comments and realise the Greek domino effect is still out there in full force.

Yeah what you have today is daytrading shorts covering prior to a weekend because they are too cheap to pay for the 2 day margin interest and so they are covering but come Monday we will be worrying all over again about the European Debt problem and that is just the tip of the iceberg.


RIMM crash today is puting heavy sell pressure on QQQ 

5 Comments – Post Your Own

#1) On June 17, 2011 at 11:34 AM, MoneyWorksforMe (< 20) wrote:

Increasing my short positions again today

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#2) On June 17, 2011 at 11:35 AM, IBDvalueinvestin (98.48) wrote:

Think about this for a moment:

On June 30th the training wheels "QE2" will be coming off the Economic bicycle.

Ever see how many times a bike crashes when the training wheels come off? 

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#3) On June 17, 2011 at 12:15 PM, MoneyWorksforMe (< 20) wrote:

I agree. But more important is simply recent U.S. economic data. Market is up on news out of Europe, but that wasn't the main reason it was down in the first place. 

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#4) On June 17, 2011 at 1:40 PM, RockOYates (56.18) wrote:

Apple's chart continues to breakdown. Today is day #2 where AAPL is trading below its 200 day moving average. The last time this happened was 551 days ago. 

Yesterday's low on the Nasdaq was the low for the year. Today, it looked early on as though we might rally and end the week up. That early morning rally is now fizzling out. Today is day #3 where the NASDAQ is trading below its 200 day moving average for the first time since Sep. 2010.

The charts for the S&P 500, the Dow, and the Russell 2000 are all testing their resistances at the 200 dma. If these three give in next week, TA types will begin agressively shorting the markets. 

Add in all the data points from QE2 ending, Shiller calling for another 20% dip in housing prices, and Greece showing a downgrade to CCC,  and its very easy to be in the bear camp at this moment.

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#5) On June 17, 2011 at 2:19 PM, MoneyWorksforMe (< 20) wrote:

10 year yield on U.S. treasuries reflecting negative market sentiment today despite the indexes being up.

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