We are in the land of news driven markets, at least on an intraday basis.
I don't think this chart should be ignored and it is not daily headline based.
As far as the daily gyrations and news, I would guess the news count is something like 20 times normal-just during market hours, throw in 24 hour and probably more like 40-50 times normal and these are big headlines, not just the Oil Inventory report.
On the last post I showed you today's intraday parabolic move up which was based on the news that there would be no Greek referendum and the parabolic move down is based on the latest news that the referendum WILL go through-sending the market lower in to the close.
We have the FAD tomorrow which will introduce a whole new level of volatility and remember that the knee jerk reaction is almost always wrong.
When I was trading exclusively for my livelihood, I had the "experience" of trading through the Bear Stearns/Lehman Brothers market. What I can tell you is that the market right now is very much like the market back then, except I would say the stakes are much higher now. So get ready for extreme volatility, get ready for indicators that you trust no longer working (3C should be fine as a money flow indicator, but momentum based indicators and oscillators will go nuts).
I'm featuring a lot more news then normal and believe me, I'd rather not, it's an additional burden, but it is important to what we do at this stage in the game. For instance, when we received the details of the bailout, cursory examination of the deal showed it to be full of holes, it wasn't hard to predict the Chinese would back away from such a messy plan. It also punished Greeks, especially their pensions so it was not hard to predict that they would not be happy, nor was it hard to predict that the other PIIGS would look to take advantage of the bailout to negotiate better terms, so the news I feature is not for entertainment, I'm far too busy for that, it is for thoughtful insights that should help us put more pieces of this insane puzzle together. We are going to need every edge we can find right now.
As bad as the trend down was in 2008, there were huge countertrend rallies, these are opportunities, but we need to identify them as soon as we can. I'm always open to hearing your opinions and to receive links to news I may not have seen yet.
If this is as it seems, the start of chaos like 2008, we'll have a lot of opportunities, but we need to work extra hard for them.
So the latest is, the referendum is back on.
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