Thursday, October 28, 2010

Last Post Before I set off-to Set Sail




These are the 5 min charts of the averages. There is a little deterioration in them surprisingly.

Being today is a POMO day, it should close green, if it doesn't (in which case it will be fighting against the sinking dollar today), it will be in my mind a very bullish sign and perhaps a reason that story was floated this a.m. during the Fed blackout period. Watch volume into rallies, it should increase if it is healthy. Volume that's big into declines is bearish.

Watch the TICK chart if you can, it will give you a good idea of where the market is headed as it trades in a channel, when it moves out of the channel, you'll know that's the most likely directional change.

I'll be updating tonight and if I get on the ship early enough, maybe again during market hours.

There is surprising weakness in the financials today, so look at the list and recent financial trades I've posted, most of all, SET THOSE ALERTS from the trade watchlist.

See ya soon and hope that I float.

33 comments:

Anonymous said...

Same old thing. UP/DOWN/SIDEWAYS!!!

Anonymous said...

Same old thing but every day or two I get stopped out on something and the losses keep mounting.

JC said...

Market is roughly where I left it a week ago, churning along a top. It would seem alot of shares could be moved in a week or even the 3 or so weeks that we have been here at the top.

Anonymous said...

Does Brandt mean "bearish" sign?

"Being today is a POMO day, it should close green, if it doesn't (in which case it will be fighting against the sinking dollar today), it will be in my mind a very bullish sign..."

Happy floating, Brandt.

Alesund said...

Yes, he meant bearish. Today's action was certainly not bullish. Expecting a green day tomorrow. But it's all noise.

Anonymous said...

Looks like another day where I will get stopped out on another short.

Alesund said...

I understand your frustration Anon. I think the big players have a big surprise in store to fool the majority. Since the majority are bullish, I would have to expect it will be a big move to the downside.

Mr Pink said...

Anonymous,

Yes, following this 3C nonsense certainly damages your wealth, i can vouch for that*.

Where is Brandt? Always seems to disappear around the time of important news announcements?

*Good job Brandt has always got his 'risk management' card to play ever time (the majority of the time) that 3C calls things wrong, thus placing the emphasis on you and you being the problem here, and not the reality of the situation where 3C is actually very poor at calling market moves.

Mr Pink said...

Alesund,

Please provide evidence that 'the majority' of the people are bullish. Mutual funds (pension funds), company insiders, et al are all selling and have been for some time. Short exposure is at high.

No retail investors in sight, the May flash crash put pay to that.

As i said quite a while ago now, and which Brandt looks to be finally come around to realising, we are fighting the FEDs free money, pure and simple.

Alesund said...

Mr. Pink,

3C is not a tool you can use on its own. It only tells us what the big money are doing (accumulation versus distribution). It is not meant to pinpoint tops and bottoms. 3C is useful, but should not be used exclusively.

Alesund said...

Brandt,

Please update us as soon as possible. This is a critical time and we would appreciate your insight.

Thank you...A

Mr Pink said...

Alesund,

Come on, let's think, Brandt has said that the big money is distributing because they don't expect prices to go much higher. Which makes sense obviously. Brandt has also said that the Big money knows about future events before every one else... therefore, using a little critical thinking:

Big money distributing heavily every day since September 1st (and even the start of the summer) means that that they didn't expect the market to go much higher than the level it was then (around DOW 10,000, SPY 104)... trouble is, 2 months later we are at DOW 11,100, SPY 118). Not to mention gold, silver going through the roof despite Brandt's calls for them looking 'bad'.

What i don't like is the large amount of times 3C calls it wrong on a daily basis. How many times have we seen 3C 1m and 5m charts point sharply down into the close on a day, and yet the real market ends up going higher into the close and then gaps up the next trading day? Lots of times i tell you, follow 3C's record of calling things right/wrong and you will see 3C is no better than tossing a coin to make decisions... if it gets so many daily calls wrong, how can it be trusted to get the longer term calls right?

... as i've said before, 3C may as well be monitoring the amount of birds flying over Brandt's house, 'cause it has very little relation to real market action.

Making good calls leads to credibility, credibility leads to reliability. All are lacking here... we look to be the sheep, not the wolves. The wolves would have ignored all this 3C 'smart money' distributing at the start of September nonsense, and bought every day... that was the smart trade.

Certainly not being short. Even Brandy who has been short since SPY 118, is now holding a position at a loss, despite holding for over 5 months. Yeah, 3C really helped there didn't it? Reality speaks for itself.

Alesund said...

If 3C is correctly showing distribution since Sep. 1, then what it means is that the markets are going to go lower than they were at on September 1.

Mr Pink said...

Meant to say Brandt, not Brandy.

Mr Pink said...

Alesund,

Er, your resumption relies solely on the fact of 3C being correct. And, as i said, if 3C gets so many things wrong daily, how can it be trusted on the longer time frames, especially when Brandt's time frames get blown out of the water time and time again. SPY broke on the Sept 23rd, remember that one? Or the SPY broke on the 19th of Oct, remember that one?

Too many bad calls in my opinion, it can't be trusted.

Mr Pink said...

Meant to say assumption, not resumption. Is there no way to edit these posts afterwards?

Alesund said...

My mind is not yet made up on 3C. It will have to prove itself on its calls on the equity markets, gold, etc. If it does not, I will no longer subscribe.

Mr Pink said...

Alesund,

We'll i've been subscribed 3months and even sampling that period of time for good/bad calls by 3C, i'd estimate, that 3C probably gets around 10%-20% of the calls correct. Natural chance means that it should be getting 50%, so it's worse than natural chance! It needs to get a hell of a lot of calls correct and soon, to bring that 10%-20% average up i tell ya!

I do believe the market will tank, i've been pessimistic on the market a lot longer than i have been here, but do i think 3C has given me an edge? No, like i said, it's cost me money if anything, gold, silver calls mainly and i certainly would have gone harder long on equities at the start of september if 3C hadn't shown distribution from day one of the 'bounce' (which put me off going long harder).

Everyone ready for 2.30 ramp up?

Alesund said...

I agree that 3C has even seemed to confuse Brandt at times. He did say gold was done in September and it kept on rising. It would seem to me that 3C should have been able to get us closer to the top. Now maybe this is a major top in gold and it is going to crash. If that is the case, then 3C will have proven useful.

His absence today though is the second time in a few weeks. I know he works very hard and he is entitled to some R & R. But we are paying $50 a month and we expect a lot from this site. I hope it will live up to my expectations.

Alesund said...

Mr. Pink,

Would you like to exchange e-mails so we can chat offsite about our experiences?

You can e-mail me at jadahadet@hotmail.com

Looking forward to corresponding with you.

A

Anonymous said...

BIG SELL OFF??? Are you kidding me! Right now I would take ANY SELL OFF. SPY has been at 118 for WEEKS now! BIG SELL OFF???!

Alesund said...

Brandt,

Please do a major weekend update on all major markets, currencies, and commodities as we are at a critical juncture.

Thank you...A

Mr Pink said...

Alesund,

All you need to know is in one of Brandts last post:

http://wolfonwallstreet.blogspot.com/2010/10/ahhhhh-kind-of-speechless-on-this-one.html#comments

" you feel ncomfortable, you can always hedge short positions with some Ultralongs and go kind of net neutral until it clears up. In the meantime, using risk management, I would still consider taking the trades that trigger. POMO seems to effect a handful of stocks and the averages, so if I were really worried, I'd reduce my exposure to the shorts on averages and hedge with leveraged longs to reach a sort of net neutral, you can always switch them back around quickly."

- Yes, that's right, after seeing a 1200+ rise on the DOW, Brandt now says that if you 'feel uncomfortable with the market action' you could go net neutral by going long to offset your short trades...

... yes, i almost chocked too when i read that... so, after being told that the wolf thing to do is to be short on this market into this 1200+ point rise on the DOW... now that we are near an alleged top, we should neutralise our shorts! Unbelievable really!

Seriously, it's like the blind leading the blind.

Alesund said...

I think that his not being around since midday yesterday is unacceptable for a paid service.

E-mail me Mr. Pink at jadahadet@hotmail.com
and we can chat about it privately.

Mr Pink said...

Alesund,

I'll send you an email when i get chance. But, i'd prefer to post here so others can comment on issues raised, if that's ok.

Mr Pink said...

... after all, we are suppose to be a 'pack' of wolves.

Alesund said...

Understood.

Anonymous said...

Thank you Mr. Pink and Alesund for sharing. Do you have Telecharts and review 3C charts for yourself? I am interested in what people are seeing for themselves. I've been looking at some myself and I really have to wonder about the value of 5 min. 15 min and 1 hour 3C charts when you are swing trading. Perhaps they help when day trading but when I see a 15 min chart showing a divergence, but the daily chart doesn't really show a change, does this really help with the trade? Comments anyone? Brandt?

Anonymous said...

Brandt's cruising. Please don't disturb him. He will only post when he feels like it.

Anonymous said...

Maybe the buffet or open bar kept him from posting all day.

Anonymous said...

Do wolves howl when they lose money? That may explain a lot.

Anonymous said...

W.O.W. has a whole new meaning after reading these comments.

Mr Pink said...

Futures going through the roof on open. DOW up 60points, S&P500 near 1190.

Gold at $1365 an ounce. $dollar getting trashed against Euro and other currencies.

But the SPY broke on the 23rd of September right Brandt (70 points ago)? Or was it the 19th of October (30 points ago)?