Thursday, November 19, 2009

Too many charts

Whenever you see me post too many charts you know I am unsure of the markets and try to look for any reason or pattern to attempt to make sense of direction. One of my main reasons yesterday for minimizing short exposure was just because of that. We have some very compelling bearish patterns developing but at the same time the bullish (whether manipulated or not) side is quite compelling - not for a trade, but for a reason to stay out and remain short term focused.

Either way - blog emotions are running high everywhere, bears capitulating, a million different calls for directions, sentiment change left and right. We are at extremes yet again, though one can argue we have been at extremes since our amazing July rally (the vicious head and shoulders failure).

As I am typing this I see SPY drop 2 spx points on the 1 minute chart on not even a million shares traded in that one minute. Talking about liquidity issues? Just imagine what would happen if the dollar goes nuts here as well. If the dollar is able to break the support I had shown in the other charts - then we really see if there is any real liquidity left in the market or if the last 2-3 months up have been a result of dollar and continuous exposure to more leverage by bulls.


  1. ok this should be re-attempting the LOD today into the close possibly get all the way to 1082. But considering we are already down so much I doubt we get this low. For now lets just focus on the 1087 as the first target.

  2. will be doing a spread before the day is over. Too concerned for more upside.

  3. spread = short a spy put with same size.