Should see some distinct profit taking into the closing
Friday, December 10, 2010
3C logging some Major Negative Divergences.
Should see some distinct profit taking into the closing
2nd and 3rd erse same as the first
We had a good number on exports this morning, a pretty decent beat, but once again, the market has failed to push higher off the opening gap up, something we've seen 3 of the last 4 days.
Here's what this morning looked like on the open.
DIA 1
QQQQ 1
It's pretty clear there's resistance around the $124 area, that supply either gets soaked up, or it overwhelms demand.
Here's what this morning looked like on the open.
SPY 1
All the chart overhead, saw selling into the gap up, 3C shows it, price action shows it.
Below, every red arrow represents the market capitalizing on a gap up within anything other then a down trend/pullback that was able to capitalize and close strongly.
It's pretty clear there's resistance around the $124 area, that supply either gets soaked up, or it overwhelms demand.
Eyes on China/Europe
China and Europe Dominate the sentiment driven market.
Today's jobless clams were another farce as again, last week's numbers were as usual, revised higher. There's n point in discounting current releases until a week later when they are revised, it's almost always higher. It makes one wonder at what point we'll see this in american cities?
In England protests turned violent, even turning on Prince Charles, shattering the glass of his motorcade. And this is over a hike in tuition fees for students. Here at home unemployment benefit are running out, unemployment is headed higher, home prices lower, home loans higher and inflation-real inflation (not the number we always get which is “excluding the things we use every day like gas and food”) is much higher.
The Irish bailout situation is threatening to tear the eurozone apart as key players like Germany say “Nein” to creating new facilitis to handle the bailouts that are coming. Interestingly, just about every Eropean country most likely wishes that they ddn't sign onto the Euro, although for totally different reasons.
As I mentioned last night, financials held the market in it's dead-man sone of resistance with good head start gaps being faded, the Dow toda closed down for a loss, the momentum in the NASDAQ was cut in half and the financially heavy S&P closed about the same as the XLF or financials kept it afloat. As I mentioned last night, there were plenty of financials set for follow through today and it would take a few days to unwind those positions, but he gains were smaller, the XLF is headed into a resistance zone and showing those positions being distributed.
XLF Bollinger Band resistance
SPY Daily
The VIX hit 6+ month new lows today
Just for example, here are some of the biggest players on the major averages, as I showed last night, the Index performance is not a good representation of what is going on inside the indices themselves, this is accomplished by buying the right stocks or buying weighted stocks to give a appearance that isn't really accurate. While I don't expect you to sort through 500 charts, I thought I'd show you a representation of different industry groups and how they've acted the last several days-these aren't little stocks.
DIS
WMT!
Any of the above will probably make for great short ideas. This is just a small sampling, but as I said, it reflects the market of stocks.
