It’s very simple. Folks talk about these 10 (that’s right, I said 10) things being the reason that we are in a correction: Europe is screwed China GDP shows hard landing and slow growth Spain bond auctions are not being supported anymore, Italy is next probably USA Weekly claims that were once dropping to 340k…
TJ's Take » A Global and Urban Flaneur
Tag Archives: SPXThe market gives signals…there are patterns… and there is advice. An individual has to listen to all three (3) anddetermine which one they go along with, there is no pointing fingers to managing your OWN Trade Book. For instance, last week the market gave bears two signals to cover NEAR TERM shorts at SPX (S&P)… What’s the difference between a bullish basing and a bearish churn? The former occurs above support and works off the overbought condition as a function of time rather than price. The latter happens under resistance and works off the oversold condition in the same manner. Check the chart of the S&P below, and you tell… The market last friday did nothing wrong, technically… we got the selling we were looking for, then the stock market held the bottom channel of a pennant I am looking at (WHICH COULD BREAK IF THE G-7 DON’T DO ANYTHING THIS WEEKEND). See the image below then the comments after it: So the market will…  Monday could be up, Tuesday could be up, but there is a HUGE amount of Open Interest in PUTS on the SPY at 110 (the SPY is a spider that tracks the S&P). The close on Thursday was 111.44 (AH it traded down to 111). I think it was more of Momo (momentum) traders who… I am seeing early signs of consolidation, oversold on the oscillators, I think if the S&P can hold 945 then it’s a good area to begin to leg into more company’s going long. however, if it doesn’t hold, then lookout below and look for better entry’s. I am skeptical on Q3 earnings for many firms…. |
|
