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: SPYWhy I came in this morning at my highest net short position in months….. Italian bonds blowing out…….. (bulls…. It’s OK..it’s just some rates..they’ll print, Ben will print, 1370 $spx year end, Baaa) Spanish bonds blowing out, can’t raise all $ they wanted to this week…….. (bulls…. It’s OK..it’s just some rates… they’ll print, Ben… The 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)… The market wants to gap up this morning. While bears typically can short the common or buy puts, there are other tactics that bears can use when the mkt goes against them. My term that many on twitter have seen is ‘selling hope’. That is selling ATM (at the money) or OTM (out the money)… 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… The past week I have been in many conversations that stemmed from European concerns, Greece default, China inflation, USA Debt ceiling, the price of gas at the pump, etc. It was uncanny the number of people who remained steadily bullish on the stock market. I shared my thesis with others and I will share it… Over the weekend I was in several conversations that ranged from the Debt Ceiling Government Theater, to LinkedIn stock (LNKD) being supremely overvalued but you cannot get a borrow on it (shorting aspect), to my call to short Netflix (NFLX) at $295 for a solid 16-19 points lower (pre-market now it’s $282 (note to self $280 is… Tell me something new FEDS, continue to tell me that the economy is doing better (it’s not), continue to tell me that unemployment is improving (it’s not, we are just adding 71k jobs a month, not even enough to keep up with NEWBORNS – 300k the past month), continue to tell me that we are…  Yesterday I was in two deep conversations via Twitter pertaining to (1) Head & Shoulders pattern (BEARISH) vs. Inverse Head & Shoulders pattern (BULLISH) and (2) When the S&P (spy) gets hard to borrow via the spiders or via the common on the S&P itself that indicates to expect a hard down day soon or… SPY (S&P 500 spider) 115 is the LINE TO WATCH, if we close below that it will be a freefall, if that is held on the close the Mkt can rally next week. Let’s go deeper. In the last week, we have witnessed a 1000 point intraday freefall and a 500 point gap higher in… |
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