Post From Yesterday

Thus far this morning, I keep thinking about yesterday's 3 p.m. post especially these charts (which appear as posted yesterday with yesterday's comments):

  The 5 min chart is leading, also positive for equities, but notice a slight negative divergence inside the box.

  There's a 5 min positive divergence in TLT, suggesting there may be a long head fake tomorrow.

UUP/$USD has a 1 min positive divergence, suggesting we may see a bull head fake tomorrow.


Later I thought, "maybe it will happen by the close?, but we shot higher. So perhaps this is a head fake, the one I had expected for today.


As for the reason, I wrote this in a post yesterday at 3:48


"The longs are NOT important to Wall Street, it's not like, "we're all long, lets get those shorts!", it's more like "YOU ARE ALL SHEEP TO BE SENT TO THE SLAUGHTER".

So right now, what longs think about the markets has ZERO importance to Wall Street, to sell their accumulated position, they need to dazzle the shorts, get the shorts confidence in the market falling back up, draw them in and then trp them with a gap up or a big move up. Then and only then, do they have the supply of buy side they need to distribute their long holdings from yesterday/Friday."

I'll be updating the market shortly.