Wednesday, November 3, 2010

Update

I didn't draw in the divergences because at this point, I think you'll be able to spot them pretty easy on your own. The huge jump in after market that we saw last night, I speculated was a possible bull trap, it looks like this morning, that's exactly what it was. There was no rationale at al for institutional money to accumulate at significantly higher prices a minute after the close when they could have had them at much lower prices during the day. This is the danger of an illiquid after market and the danger of reading too much into after market action. It was really just a matter of common sense since NOTHING was announced after the close that would give any reason to buy like that in after hours.

Here's the 3C charts on this morning's opening.



It's not hard to see the negative divergences at the tops as I mentioned yesterday, that is distribution into higher prices and setting shorts likely by big institutional players and they've already made a profit off them in the first two hours of trade.

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