7 days in a row !!!

Yesterday
Another odd day to add to the list. I have to admit I was a bit surprised at the action after the open yesterday (excluding the close). We had a strong GAP down without any fill attempts. While we continued trading lower my key sectors Financials and real estate did not do anything. Both remained in a very narrow range most of the day. I did enter a small short off the open in both of those sectors but the hesitation throughout the day with the S&P500 divergence spooked me a bit. I had closed both of them out towards the afternoon at no gain/loss (covered fees and got some lunch money but thats it).

"If you do not understand it, get out and ask questions later". This was one of those for me yesterday. I expected a lot more action around key support ranges especially after the open but none occurred until the last hour.

Our daily volume continues to drop further and further. Considering we are moving at key ranges here we should be seeing new buyers step in. That is not the case and if you watch the 1-min bars carefully for many sectors we continue seeing quite a bit of selling pressures. The liquidity providers are doing a great job at hiding the real picture. This is not meant as a bearish support fact - just a mere observation I find interesting.

APPL - 7 days in a row. Thats a first for 2 years. There are only 2 other similar events with such a strong up move on the noob index as they were coupled with a distribution day in between.

8/14/2008 - 7 days + 1 down in between (bear market rally top at 8/18/2008)
5/6/2008 - 9 days + 1 down in between (bear market rally top at 5/19/2008 - apple did put in a higher high at 5/14/2008)

Both times APPL lead the bear market rally top by 4-5 days. So keep this in mind while we continue through our ranges here =)

Dollar Example
I am going to make a simple analogy so it makes a bit more sense.

My Cash: 1000 EURO (could be any other non USD based asset)
US Equity 1 share price: $100USD

Todays Exchange rate: 1 EURO = 1 USD
Today I could buy 10 shares of said company (10 shares @ $100USD = $1000 USD = 1000 Euro)

Tomorrows exchange rate: 1 EURO = 2 USD
Tomorrow I could buy 20 shares of said company (20 shares @ $100USD = $2000 USD = 1000 Euro)

So with the dollar decreasing in value US equities are cheaper. So lets look at the USD - Euro changes over the past 3 months. We went from 1.25 all the way to 1.42. Thats quite a big increase and another key driver why the markets have rallied so much. Thats what happens when you keep on printing money =)

So once the dollar finds support which it will very soon, the markets should make a turn as well. USD is a leading indicator meaning it takes a bit longer before the markets react. Thats why its important to watch this carefully so you can time the turns properly.

Today
I will post updates in comments. Not a lot of time this morning.