Wednesday, April 17, 2024

Is It Dead?

is-it-dead

Wow!  What a Bloody day on Wall Street for the Bulls!  I was wrong yesterday in thinking that Goldman would hold up the market today, and that we would sell off to 1115 on Friday.  I hope that many of you were already short and profited from it even though it came a day early.  I know I'm a happy camper, as I was already short!

Today's volume was one of the largest I've seen in many months, with 338 Million Shares Traded on the SPY.  Big Volume = Big Down Day!  This is going to be an exciting year... if you're a Bear that is?

Looking at tomorrow, we have some good support a 111.40, and 111.20 SPY.  If we gap down, I'd expect those levels to hold, and the rest of the day should float higher... although not a whole lot higher.  No major news or earnings are being reported tomorrow, so that sets up a "Pause" day... (flat to slightly up).

Moving on...

Isn't it interesting how Scott Brown, a Republican, wins the Senate seat, and suddenly Obama decides to come out on TV and state how he's now going to be tough on the Banks?  Coincidence?  I think not... He did it because he's now worried about his popularity... which is now shrinking!  He has too act tough on the banks so people won't switch over to the Republic side when more elections come up.

He already lost a key Democratic seat when Ted Kennedy died, and was replaced with a Republican.  Now his health care bill (which is garbage by the way) is in jeopardy of not going through.  Then there is the economy, and this fake wall street rally... which isn't working or creating any new jobs!  Duh Obama!  I could have told you that!

Let's not forget about Ben Bernanke, as the Senate has yet to re-appoint him.  I think they won't, and that will be another "lack of confidence" of a recovering economy.  Which will probably start another sell off in the market?  So, looking forward (and I'll do more a in-depth post this weekend), I'm expecting a few days of a flat to slightly up market until Obama has his "State of the Union" speech next Wednesday.

If you are still short, and didn't close out today, I'd close them out tomorrow on any gap down and stay in cash over the weekend.  That's what I'm doing, as any move up next week will be limited and not worth risking... in my humble opinion at least.

Red

Red
Author: Red

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annamall
14 years ago

Red please find another picture, that is freaking offensive to an animal (annamall) lover. can you do better?

Red Dragon Leo
14 years ago
Reply to  annamall

Anna, what did you eat yesterday from the sub place? Did it have meat on it? It's bull girl! Nobody cares about the bull! But, so I don't hurt your feeling… I promise not put of a picture of a dead bear.
🙂

annamall
14 years ago
Reply to  Red Dragon Leo

thank you for changing the pic, I don't like to see any abused or tortured. especially annamalls bull bear dog cat raccoon, ect ect you get the drift….
Mucho appreciado :P)

indigo
indigo
14 years ago

Hey Red, thanks for your updates! Are you still looking for 1160 – 1180 until Feb 9? FlashFusion seems to think the market will be propped up going into the G7 meeting, though I'm seeing next week as positive until Wednesday or so after which there will be a sharp drop by the end of the week, possibly bottoming on 2/2. After that I see it as up again until 2/8 then a mini crash. Does this fit your friend's forecast? Thanks lots for sharing!

Red Dragon Leo
14 years ago
Reply to  indigo

Sounds just about right. I'm still not sure if we will make new highs by 2-9, but we should rally up into it. And yes, next week should be up until Obama speaks, then down to 1075-1080, and back up to 2-9 or so.

I'll do a chart on my weekend post with probably dates and levels.

PRAMOD
14 years ago
Reply to  Red Dragon Leo

when is Obama's speech?

Red Dragon Leo
14 years ago
Reply to  PRAMOD

Wednesday the 27th.

PRAMOD
14 years ago
Reply to  Red Dragon Leo

Thanks 🙂

natalie p.
natalie p.
14 years ago

Careful about going against Flashfusion. He is seldom wrong. So we go up next wekk and may pop higher than most may think. Right now there's waaaaaay too much bearish sentiment on the blogosphere.

Red Dragon Leo
14 years ago
Reply to  natalie p.

Not sure what you mean about going against FlashFusion. I also believe we will go up next week into Wednesday when Obama speaks.

Piet Kruger
14 years ago

Hi Red, great post as usual.

Whilst I have very little interest in trading the US stock markets, I do find your particular brand of wisdom quite refreshing.

I have to admit that the animal rights angle raised earlier is something I have never seen on any financial blog, and although I haven't seen the picture in question I have to compliment you for realizing that your visitor's perceptions are important enough to warrant a change in visual material when asked to do so.

Great going and I look forward to your next post!

Red Dragon Leo
14 years ago
Reply to  Piet Kruger

Hey ol' buddy… thanks for stopping by again. The picture that Anna was upset about is here….

http://reddragonleo.com/wp-content/uploads/2010

She is a dear friend (I created her blog for her too… Hot Option Babe, link on blog roll), and a truly nice girl (woman) with a very kind heart. She's a big animal lover, and that's why it upset her.

I love animals too, but I don't get too upset if a Bull dies. Now a cat or dog… yes! But not all animals. Anyway, I changed it for her.

Get ready for the first week of February as a big sell off is coming! You might want to throw a little in the market and short it hard?

Red

cyst em
cyst em
14 years ago

great job red

i think you've got it right again, today we should see some morning weakness but it won't stick.

I'm looking for a ramp job into the 29th.

Red Dragon Leo
14 years ago
Reply to  cyst em

I don't know if we will go up all the way until the 29th, as that's a Friday and Obama speaks on Wednesday? I think we could start back down shortly after he speaks.

cyst em
cyst em
14 years ago

great job red

i think you've got it right again, today we should see some morning weakness but it won't stick.

I'm looking for a ramp job into the 29th.

Red Dragon Leo
14 years ago

I don't know if we will go up all the way until the 29th, as that's a Friday and Obama speaks on Wednesday? I think we could start back down shortly after he speaks.

Red Dragon Leo
14 years ago

Hey ol' buddy… thanks for stopping by again. The picture that Anna was upset about is here….

http://reddragonleo.com/wp-content/uploads/2010

She is a dear friend (I created her blog for her too… Hot Option Babe, link on blog roll), and a truly nice girl (woman) with a very kind heart. She's a big animal lover, and that's why it upset her.

I love animals too, but I don't get too upset if a Bull dies. Now a cat or dog… yes! But not all animals. Anyway, I changed it for her.

Get ready for the first week of February as a big sell off is coming! You might want to throw a little in the market and short it hard?

Red

Red Dragon Leo
14 years ago

Not sure what you mean about going against FlashFusion. I also believe we will go up next week into Wednesday when Obama speaks.

Red Dragon Leo
14 years ago

Sounds just about right. I'm still not sure if we will make new highs by 2-9, but we should rally up into it. And yes, next week should be up until Obama speaks, then down to 1075-1080, and back up to 2-9 or so.

I'll do a chart on my weekend post with probably dates and levels.

PRAMOD
14 years ago

when is Obama's speech?

Red Dragon Leo
14 years ago

Wednesday the 27th.

PRAMOD
14 years ago

Thanks 🙂

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