From yesterday's close, this is not the open that I expected, but we are seeing that short term accumulation again right now.
Friday, August 20, 2010
Update
Thus far there's all kinds of news as to why the market is down today. Perhaps it stays down, we saw a couple of short term divergences rolled right over, when they are 1 minute divergences that means they are typically market makers/specialists trading, either accumulating or distributing, toward the close we saw accumulating. While market makers can account for 30% of the volume in a stock for the day just trading their own account, many times their actions are a signal as they are relied on to fill large orders for institutional money in many cases.
From yesterday's close, this is not the open that I expected, but we are seeing that short term accumulation again right now.
As you can see we have another leading divergence into a small double-bottom-type formation. Lets see where this leads. $110 is going to be quite a climb from here.
From yesterday's close, this is not the open that I expected, but we are seeing that short term accumulation again right now.
2 comments:
Dollar had a huge gap up this morning. Oil down and the market. Seems to be a strong move that is eating up 3c divergences.
Apparently the Euro got hit hard when the German bond auction didn't go so well, it's definitely not the type of info that would be leaked. This in turn takes the dollar up, the market/oil and certain commodities down, actually most commodities, so there's probably very few bright spots in the market. This action in the dollar has been anticipated for a bit now, which is why I've been listing so many shorts. However, the SPY is still not so far gone that it couldn't put together an afternoon rally as has been the pattern, I just think $110 might be a stretch, which might mean that our question of who owns the calls is answered. I'll have to keep an eye on oil, short term the divergences aren't there for a move up right now, we missed that with the 2 day market bounce, but long term if they hold up, then something not connected to the dollar is happening, they do uncouple at times.
Post a Comment