Wednesday, September 15, 2010

Not unexpected...

The SPY run above $113.10 or so brought the longs back into the trade, it's since kind of paused, there's a long-term 1 min negative divergence, so now what would be interesting to see is a run below $113, volume would be interesting at that level.

8 comments:

JC said...

I think more importantly, what does the 5-15 look like going into tomorrow? This thing needs to move now and in the morning, because the FED pomo program starts back up in the late morning early afternoon. It is my understanding that they are dring high beta stocks at 30x leverage. That is a lot of coin every 2 days.

Brandt said...

Both are negative. There's a bull flag, so with their antics I'd expect a false b/o to the upside and then a drop, but we're running out of time for today.

Brandt said...

There's the breakout I just mentioned.

Brandt said...

The tick index is negative on the breakout as I'd expect

Brandt said...

There's the 1 min negative divergence

Brandt said...

There's the break back into the bear flag on volume

JC said...

We seem to be trying to run these moves late in the day with no time left. Either we have one heck of a sell off coming or this is the new game of small swings.

Mr Pink said...

Jack,

Plenty of POMO today apparently:

http://www.zerohedge.com/article/wonder-why-market-just-surged-one-word-pomo

Seriously, there is NO WAY retail is in this market. So i don't know why we keep this "Needs to go higher to trap more longs to help with the downside momentum" train of thought going.

We are fighting against freely printed FED money, pure and simple, the market is just pure intervention (equities, FX, bonds) there are complete 180 degree (stick-save) turns when things start going down.

The fact the market shot up at the end and then hung in the air like it didn't know what to do is because no body jumped onto it long wise, because no retail are interested in entering this market especially after the May flash crash. There is no volume. So what's the point 'in trying to bring in a hand full of longs and trap them', surely you need to trap a huge volume of longs and trap them, to then help with the downside crash down?

Looks like another day where 3C says down, but the market goes up.

It looks like the 'hang man' indicator that occurred over a week ago now on the SPY didn't come to fruition, and the dollar is looking as weak as ever. Gold has made new highs, silver is through the roof (despite 3C saying it looks 'sick' a couple of days ago).

3C has been saying distribution in the SPY since it bounced off of 1040 (nearly 100 points ago) and distribution in the DOW since it bounced off 10,000 (nearly 600 points ago).

I tell you, being short i don't feel like a wolf, i feel like a sheep getting sheered more and more each day. I definitely think we need to see the start of the reversal this week, but with POMO free money being pumped into the market tomorrow, friday and monday is the market really going to sell off into that!?

It's been all bad news (or less than expected bad news), why would some more of the same announced tomorrow suddenly make the market sell off?

19th week of outflows also:

http://www.zerohedge.com/article/stocks-surge-celebreate-unprecedented-19th-sequential-equity-outflow-10-billion-september-re