GOOG and MARKET Update

This is by far one of my favorite shorts, if you have seen one of the longer GOOG Analysis posts, you know why. Take a look at this...

 On a daily chart, GOOG is not only putting in a double top, but since the market uses technical analysis against traders (unbelievable that retail traders think that just because Technical Analysis is new and exciting to them, that  Wall St. doesn't understand what these guys are thinking when they can see every order they place on limit with their broker and they have been using the same T.A. for over a CENTURY!) GOOG is also putting in a shakeout move and a head fake move at the same time.

Technical Analysis has taught for nearly a century that a double top should see the second top (now) fall short of making a new high, in fact it should fall short of moving to the first top. However Wall Street is well aware of this and this is now what Double tops (and the same concept in reverse for Double Bottoms) now look like. They run pause with a bearish candle like yesterday's long upper wick indicating resistance, it seems the double top is doing exactly what the text books say it should do, shorts enter, then today we have what is known in Technical Analysis as a Breakout and to a new high, all shorts cover, longs buy and GOOG moves higher. This is the head fake, this is the great timing and I want to short GOOG so badly right here and now, but here's why I wait...

First this is a daily chart, it's one of the most powerful 3C charts you'll see, divergences here are HUGE sums of money. GOOG was in trouble all the way back at the October top, the first part of the double top "B" saw a higher price than point "A", but look how 3C is lower, this is the first clue we have a top forming. The second top at "C" makes a higher high, but look where 3C is compared to "B" or even "A", this is an enormous Leading Negative divergence on a daily chart, you can't ask for a stronger signal.

 Well, actually you could, a 3 day chart is even stronger, I drew in various divergences, because this is a 3 day chart and on a daily timeframe, even a tiny arrow is a huge divergence. Again what do we have at points "A", "B" and "C"? The exact same signals as the 1 day chart and a leading negative divergence.

Why am I not shorting GOOG RIGHT NOW?

You see this chart? It is a 2 min intraday chart, this is like a splinter in the lion's paw compared to the charts above, but it's great for tactical timing, it shows the end of day GOOG is getting support with a small, but effective enough on a 1-day basis (Monday), leading positive divergence. GOOG is not tactically in the perfect spot. This tiny spec of a chart is what holds me back.

VXX all of the sudden at the end of day is moving up, why? It's moving up not because of manipulation, it's moving up because of fear, real demand for protection in bidding up the VIX Futures, but look at what follows next...

Now, since the market started to head lower in to the closing hour, look at what has happened, HYG the asset/Lever that has been causing trouble for the manipulators all day is being pushed higher, in effect supporting the SPY/SPY Arbitrage, but they didn't spend money pushing it up all day, they waited until shorts were already in position and then bought some and let the shorts' covering do the rest because they won't want to hold a short over the weekend if it looks any better than they expected, only if it looks worse, that's how easy that is, it's exactly what I explained in an earlier post.

And what's this? It's exactly what I feared would happen at the end of the day if we took on shorts...

ES (SPX Futures) have been in a negative divergence all day, it's real alright, it's real distribution in to higher prices and short selling, but it's being maintained by gimmicks like the one above.

And what happened? As price moved down and traders maybe went short to fade this very strong 2-day move up, all of the sudden HYG is pulled as a manipulation lever and even ES is accumulated at the white arrow and prices actually start to rise. We'll have to see if they cause shorts to cover.

As for SPY momentum, take a look...

SPY on our intraday momentum screen, the momentum indicator with price goes positive, RSI goes positive, MACD has a long positive divergence and goes positive and RSI has 2 positive divergences below <20 and="" heads="" p="" then="" to="" up="">