Wednesday, September 8, 2010
Opportunity?
The SPY has been in a bear flag since the President started speaking, it hit resistance where it was most likely, at SPY $110.50, "looks" as if it's about to break down. Watch for a false upside move above $110.50 (Wall Street games) , but I don't think it's "very likely". Below $110.25, I'd say the bear flag has broken to the downside.
4 comments:
Watch the EUR/USD as it is heading lower over the last 5 min
UUP is starting to show 3C improvement again.
We need the dollar to rally to see the light at the end of the tunnel. Boy does that guy like to here himself talk. I bet they went off stage giving each other high fives and patting themselves on the back.
UUP is difficult to get good 1 min signals because the trading in UUP is so spotty. However , using longer term charts, there is a series of positive relative divergences moving up.
This was billed as an economic speech, obviously it wasn't. There didn't seem to be any new economic news in the speech and it was released well ahead of time so I think the smarties may have used both events, the beige book and his speech which I think bulls, with their eternal optimism were expecting something big out of this. So the smarties run up the market on optimism-from a bull's perspective they could think the Beige book may be bad, but that's why the President will speak right after, to announce something big and mitigate the Beige book. Obviously that didn't happen. Wall Street just knows the game, they know mass psychology, they see the order flow, they have every advantage. As I said yesterday, don't be surprised to see something like this, smarties in a top will shake the tree as often as they can, this is why all of my trading decisions are long term.
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