DIA is still in a worsening negative divergence, but there is a triangle in the majors, that would lead me to believe the probabilities are high of an upside head fake first.
Friday, October 8, 2010
Update
Last update we had the negative divergences in place, but like we have seen (I keep saying 85% of the time, but it feels more like 100%). I said this in the last update....
DIA is still in a worsening negative divergence, but there is a triangle in the majors, that would lead me to believe the probabilities are high of an upside head fake first.
You can see the triangle to the left, it's an obvious pattern and an obvious breakout.
DIA is still in a worsening negative divergence, but there is a triangle in the majors, that would lead me to believe the probabilities are high of an upside head fake first.
6 comments:
Yeah, but 85%-100% of the time after these little triangle breakout games that 'sucker' longs, the market goes up higher anyway. So, who's the real suckers here? Certainly not longs it would seem.
Trading volume in EM stocks has exploded, with trading volumes up almost fourfold from the lows of the end -2008 (source: BCA research). Extreme trading volumes normally indicate excessive speculation. In terms of sentiment, Morgan Stanley recently held a macro conference in which 62 per cent of the clients present were most bullish about EM equities over the next 12 months. In Morgan Stanley’s monthly buy-side survey, 86 per cent of its clients were bullish about EM equities, the highest reading ever for any asset class. This extent of bullishness is normally a classic contrarian indicator.
Almost time for the 2:30 ramp job. Time to take out that 11k good and proper, so there's no doubt who's controlling this 'market'.
now you're gettin it pink!
Rule #1
Don't fight the fed
Rule #2
See rule #1
john9o9,
Yep, and we are in a small period of time when there is no POMO... so we've got that to come very soon too!
But 3C says equities down every day... so surely it's got to rain one of these days? I must go check that broken clock to see what the time is... ;-)
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