Last Update for the Trading Day

I've made a lot of the ability of Wall St. to scare people out of their shorts and bring in the mindless longs that want to believe the market is always a bull market.

In any case, there's been another round like yesterday, of accumulation since 2 p.m. They didn't break resistance on the first pass, they didn't want to, they wanted to buy cheap and sell high. Now they've gone ahead and broken the first resistance zone. $109 will be a biggie for a lot of traders and we're almost there, I'd guess that they will take out $109 to grab attention and get the AH market in a tizzy again. Although this is a bit different, yesterday they were accumulating in AH, today they started early and probably want a nice run in AH to gap the market up tomorrow. Like I said last night, this is what I need to find some good short set-ups and it doesn't bother me one bit. If you look at the charts of 2008 and 1929 you will see that there's no such thing as a sell-off that just goes straight down, it's not a money making prospect for Wall St. To accumulate cheap today an sell high Friday/Monday is where the play is at, however, it's just a play. After the initial 1929 break of major support we saw that 7% gap up and about a week of higher prices, then it all fell down. It's actually good for a short position and this is why I say "phase into your positions-not all at once if you can help it" because of maneuvers like this. It's also why, even when fully loaded, I keep 25% in cash to be able to take on these plays.

So yesterday the divergence was there, with the jobless claims it made no sense to have a positive divergence, but as always, my logic is never competition for what the chart is saying. Now the chart is saying there's a high probability of a bounce Friday which means probably Monday as well. This will set up nice positions on the short side.

I'll post charts tonight, short term traders that have a profit in shorts may want to take some off the table-it's your call.

See ya soon.