Sunday, July 21, 2024

What I wild ride today was…

amazing-roller-coaster-in_world

 

Today looked like a roller coaster ride!  Up, down, back up, then down.  That's what you call a major "Whiplash".  It looks like we might be in the middle of Scenario ONE, or THREE, from my weekend post.  We have another Fed Meeting Wednesday, and I expect the market to continue trading wildly with an upward bias until the meeting.

Then, I'm expecting more selling.  We've hit that 104 spy level and busted through it, so it won't be much support on the way back down.  The 102 level should have some bounce, but I don't think it will be much.  It will probably be hit around Thursday or Friday... right when the jobs numbers comes out.  I think they are done manipulating the numbers to the degree that they did during the rally up.

Yes, we all know that the really unemployment is around 16% percent, not the 10% that they tell us.  But, they seem to know that the market is now in a corrective phase, so they simply report the numbers that they are told.  That's my thinking at least.  The last 2 weeks the numbers were quite bad.  I see no reason to think that anything has changed since then.

The big boys are in "Sell Mode" right now, so they just let the chips fall where they may!  If it's bad... just report it.  They are short the market anyway, and will profit as it falls.  So, back to my original thoughts... the 1020 area should be hit during that bad jobs numbers.  That means it's likely to fail fairly quickly and move on down to the next support level at 998-1000.

You will probably see a intra-day bounce at 1020, but ultimately we are headed to 998-1000 before any decent bounce.  I will be looking to go short on Tuesday or Wednesday, just before the Fed's have their little "pow wow".  After we hit support at 998-1000, I will get out of all shorts and go long.

I'm not sure yet how high we will bounce off that level, but there is an 80% chance of a nice bounce there.  I would expect a 50%, or 61.8% retracement back up.  That's from the 1102 high, to where ever it finds support around the 998-1000 area.  That's about 100 point move, so 50% would takes us back to about 1050, or 61.8% to about 1060.

But, let's play one bounce at a time.  Let's look for a high tomorrow or Wednesday before the Fed's talk.  It's looking pretty weak, and Scenario THREE may be in play?  That means a move to just under 1060, instead of the 1073-1076 area listed on Scenario ONE and TWO.

That might be the retracement point back up after we hit the 998-1000 level?  So, hang in there friends as this party is just getting started!

Red

Red
Author: Red

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rrman
rrman
14 years ago

Sounds good I think we go down tonight on futes and into 10am tommorrow then the big up starts for the monster rally wed…

Red Dragon Leo
14 years ago
Reply to  rrman

Yeah, I'm leaning toward Scenario ONE or TWO for the high around 1073-1076, but that might not come until after we hit the 998-1000 area first.

So, the 1050-1060 is more likely to be the high… just before the Fed's talk, and then more selling until we hit that 998-1000 area.

Red

jaywiz10534
jaywiz10534
14 years ago

HI Red,
Thanks for your comments
and your blog
My scientific indexes show a low at close today
possible lower open at 9:45, but UP from there to mid day on 6th for next turn lower into 9-10 SUn 90 jupiter
See HELGE site- intraday cycles and scroll down to raw numbers chart.
Jay

Red Dragon Leo
14 years ago
Reply to  jaywiz10534

What the Fed says will be the key. I'm not sure yet if we go on down to 1020, or rally up to just under 1080. This 1040 area is in the middle and I don't want to pick the wrong direction. So, I'm waiting on the sidelines for now.

I think you are right about the 9-10th, as that could be a turn date. Up till then, and rollover… or down some more first and then rally? That is the question…

Red

annamall
14 years ago

Hi sweetie
I went long at LOD today with 104 nov Spy calls, expecting a rally this week to around 1060

Red Dragon Leo
14 years ago
Reply to  annamall

I'm a little hesitant to go long or short just yet, as this could go either way? It's stuck in the middle between great support at 998-1000, and huge resistance at 1100.

It should pick a direction after the Fed talks on Wednesday. We'll see…

Red

Red Dragon Leo
14 years ago

I'm a little hesitant to go long or short just yet, as this could go either way? It's stuck in the middle between great support at 998-1000, and huge resistance at 1100.

It should pick a direction after the Fed talks on Wednesday. We'll see…

Red

Red Dragon Leo
14 years ago

What the Fed says will be the key. I'm not sure yet if we go on down to 1020, or rally up to just under 1080. This 1040 area is in the middle and I don't want to pick the wrong direction. So, I'm waiting on the sidelines for now.

I think you are right about the 9-10th, as that could be a turn date. Up till then, and rollover… or down some more first and then rally? That is the question…

Red

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