Saturday, April 20, 2024

Weekend Update…

I can't find anything bullish?

I wasn't sure what to say this weekend, so I'll keep it short and simple.  I looked hard for a reason to see a gap up on Tuesday, but I can't find one?  Yes we are overdue... yes we need one... but I just can't see it in the charts yet?  Last Thursday I did a video explaining that I expected a move to 1040 on Friday... but it didn't happen?

Friday had everything going for it.  It had light volume, a holiday weekend in front of it, and traders leaving early... but it failed to rally?  In fact, the brief rally into the close was sold off in one 10 minute bearish engulfing candle.  Not good for the bulls at all.

While I still think we will see that 1070.50 spx fake print soon, it might not happen until we put in a lower low first.  While we did that last week, it didn't come with any panic selling, and that's what concerns me.  We need a capitulation day to wipe-out all the bulls, and get every bear back in... short again.

Most bears probably closed up their positions on Friday, expecting a rally next week.  After all, who would be brave enough to hold shorts over a 3 day weekend, after selling off for 2 weeks straight now?  I'd say those bears are in cash, and I'd guess that there were some bulls that went long into the weekend... but not many.

I think it's going to catch a lot of people off guard if it goes down instead of up on Tuesday.  Anyway, I'll keep this short, like I said.  But one other thing... you should watch this video below about the BP disaster, it confirms what I thought all along... it was another false flag event.

Red

Happy 4th of July everyone!

Update: This is a very interesting video by Karl Denninger, showing how the market in currently (as in July 4th, 2010) being manipulated up and down with fake bids and sells. Watch it... it's worth your time.

Red
Author: Red

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zstock7 Pro Select!
13 years ago

Hi Red!
Nice Video,
QQQQ's have the same readings, only worse.

zstock7 Pro Select!
13 years ago

There's one part of the economy I can't get a true number on. Gulf states. $20 Billion isn't nearly enough to cover the losses.
Here's what I think I'm seeing on the TV news.
Florida alone, could lose a 1/3 of a trillion in tourism, this summer. That's nearly 500 dow down points.

zstock7 Pro Select!
13 years ago

BAC, worst case, it trades at 11 p/e or 10.78. or RSI 15, CL 13.84

anoopsan
13 years ago

EUR/USD Hourly chart technical analysis
http://niftychartsandpatterns.blogspot.com/2010

Red Dragon Leo
13 years ago
Reply to  anoopsan

That looks like a descending triangle, and it could break down into the cloud. However, it could break upward as I can also see slightly downward sloping wedge… although it's not close to the end of it yet.

Hard too say as that moving average could also support it, and let it bounce upward in another leg higher. I see both bullish and bearish patterns in it.

anoopsan
13 years ago
Reply to  Red Dragon Leo

I am expecting the moving average to support the pair for an upmove.

Red Dragon Leo
13 years ago
Reply to  anoopsan

How do think it will relate to the overall market, like the Dow and the SPX? The dollar seems to be disconnecting from the market right now.

anoopsan
13 years ago
Reply to  Red Dragon Leo

The Eur/Usd disconnect was also seen last week. We have to wait and watch how this spans out. But the eur/usd and the equity market disconnect may not be there for too long.
The eur/usd break out was not followed by equity markets and the break out in the pair too is stalling for too long. If it does not move up quickly this one will also end up in the failed break out category And will take down Markets like Dow and SPX with it

o_p_a
o_p_a
13 years ago

That is the situation we face right now. The SP500 is down 16% from its April 23 top, but the Bond CEF A-D Line is at a new all-time high. As the chart illustration points out, instances of a decline in the SP500 that is not matched by a decline in the Bond CEF A-D Line tend to be temporary stumbles for stocks caused by worry and not caused by illiquidity, and so the stock market is able to quickly recover.

http://www.decisionpoint.com/TAC/MCCLELLAN.html

Red Dragon Leo
13 years ago
Reply to  o_p_a

Well, that would imply a rally in the market soon. While I've been expecting one to happen, finding the temporary bottom isn't easy to do. I thought we would bounce to 1040 last Friday, but that failed?

So this week should produce a relief rally, but the charts aren't showing it yet. Maybe they will turn on Tuesday or Wednesday, it's hard to say. But we are certain overdue for a rally now.

zstock7 Pro Select!
13 years ago
Reply to  Red Dragon Leo

Red!
My best guess.
I'm starting to think, SPY gets to RSI 50, by JULY 17th. 12th-17th, a lot of good companies are reporting earnings.
RSI 50 is approx 1070.

o_p_a
o_p_a
13 years ago

“This decline, while it does not look quite complete yet, should end Intermediate wave A of Major wave C. After it ends, probably with a retest of the 1007 pivot, we should get another one of those 80 point rallies for Intermediate wave B. Then another decline should follow, probably about 130 points, into the final low near the OEW 944 pivot. Many technical indicators we follow are already quite oversold after the recent decline.”

http://caldaroew.spaces.live.com/

zstock7 Pro Select!
13 years ago

Here's a potential inverse head and shoulder on the SPX, From Gary..
<a http://1.bp.blogspot.com/_V7Pddp58Py0/TC5DOvim0

anoopsan
13 years ago
anoopsan
13 years ago

Dow Jones futures hourly chart trading in a raising channel
http://niftychartsandpatterns.blogspot.com/2010

Red Dragon Leo
13 years ago

Looks like the rally is on this morning, as they first took it down to 1002 pre-market, to hit all the stops of the bulls that went long into the weekend. Now, they are going to put a hurting on the bears it seems. The short squeeze from hell.

IlliniKap
IlliniKap
13 years ago

Is there any catalyst for this today? ISM actually came in lower than expected and we're still rocketing to the sky. Dead cat bounce?

Red Dragon Leo
13 years ago
Reply to  IlliniKap

I think it's more of a technical bounce, to squeeze out the shorts, then for any news related issue.

jimhobson
jimhobson
13 years ago
Reply to  Red Dragon Leo

This a tech bounce. No reason for it other than they need an opportunity to sell into.

Red Dragon Leo
13 years ago
Reply to  jimhobson

I don't know Jim? We do have a fake print of 1070 spx, and it will be reached at some point, but when is something I can't answer? I think a lot of people will go long on any dip today, as everyone knows how oversold we are.

I just find it hard to believe we will go back down without a larger move up first. I'm still short, (painfully), but it looks like it's going higher too me, before selling back off again.

jimhobson
jimhobson
13 years ago
Reply to  Red Dragon Leo

I agree with that target. i am in sso and out of all shorts except TZA which I have a bunch of at very low entry so Iam holding.

i will add shorts as we continue this. Could last through opx but w/such weak news I do not know either.

Red Dragon Leo
13 years ago
Reply to  jimhobson

Yes, this is all technical, because the news is still negative. I thought we would hit 1040 last Friday, but they waited until today to squeeze the bears.

They took it down to 1002 ES on Sunday night and Monday night, and then jammed up this morning. I guess they were baiting the bears of a possible gap down today, as well as clearing all the stops the bulls put in on Friday.

I have no doubt that we will get to 1070, not because everyone expects, but because of the fake print. The “when” question is what I can't answer.

If we dip into the close today, a lot of people will go long I believe. Everyone knows how oversold we are, very few want to go short at these levels.

Yes, there is still overwhelming bearishness out there, but are they really short the market right now? Or, are they in cash waiting for a rally up to 1070 to short? I don't know, but it certainly looks like positive day today.

However, I've noticed that the overnight high or low is usually tested again at some point during the regular hours. Seems unlikely to happen today, but stranger things have happened.

Geccko23
Geccko23
13 years ago
Reply to  Red Dragon Leo

The Helge charts were very accurate for yesterday afternoon and evening and they have continued to be.

Red Dragon Leo
13 years ago
Reply to  Geccko23

Do you have a link to the Helge charts?

Geccko23
Geccko23
13 years ago
Reply to  Red Dragon Leo

Jaywiz does. Goto his intraday charts for the current week. They admittedly take some time to fathom.

Geccko23
Geccko23
13 years ago
Reply to  Geccko23

You have the link right up there under intraday cycles. Helge has a link to your site also

Red Dragon Leo
13 years ago
Reply to  Geccko23

Oh… thanks. I forgot I had it up there.

jimhobson
jimhobson
13 years ago

There is no conviction here. Rvix is even positive. No serious buying on this dip at least for now.

After last nights futures I would not be surprised to see a total turn around and close negative.

Red Dragon Leo
13 years ago
Reply to  jimhobson

I think most people are looking for a dip back down to 1020 area to go long at. However, should the 1020 area fail, then yes… we could easily go back down to that overnight low.

Geccko23
Geccko23
13 years ago

XTrends is now a bull board and Well Armed has turned short-term bullish and they say everyone is bearish. I believe most of the hardened bears are out of the market.

Red Dragon Leo
13 years ago
Reply to  Geccko23

Atilla is on a longer term time frame then I am. He can wait for several weeks or months if necessary. While I'm sure we are going up soon, I don't know if it starts today or not.

The daily chart is turning back up a little bit, but we could still go lower first, before a larger move up. I'm still bearish short term, as in hours to days.

anoopsan
13 years ago

Dow Jones fib ratio for the recent fall
http://niftychartsandpatterns.blogspot.com/2010

monicadern
monicadern
13 years ago
Reply to  Red Dragon Leo

Thanks Red!

anoopsan
13 years ago

POSITIVE DIVERGENCE May give a small bounce
http://niftychartsandpatterns.blogspot.com/2010

zstock7 Pro Select!
13 years ago

Dow should finish the day in positive territory.

Red Dragon Leo
13 years ago

Sure looks like it's holding here a this support level. Hard to say if it holds into the close or not?

zstock7 Pro Select!
13 years ago
Reply to  Red Dragon Leo

TWM 24.06 short term support = 200 day, currently 24.78. Holding above its 200 day, 3 days now.
IWM 58 maybe?

zstock7 Pro Select!
13 years ago
Reply to  Red Dragon Leo

Dow closed positive. I finally read the 15 min chart, right.
It's been awhile since I did that correct. about time:)

zstock7 Pro Select!
13 years ago

Shorting TSL,FSLR,QCOM for a hedge, against my Loser Longs.

anoopsan
13 years ago

Important support and resistance lines for SPX
http://niftychartsandpatterns.blogspot.com/2010

Red Dragon Leo
13 years ago
Reply to  anoopsan

What would a break down produce? What level on the spy and spx?

anoopsan
13 years ago
Reply to  Red Dragon Leo

a close below 1018 in SPX will take it down to 1016 and 1010 in the short term.

anoopsan
13 years ago
Reply to  Red Dragon Leo

a close in 30 minutes or hourly chart

zstock7 Pro Select!
13 years ago

I should short HUM too!, since it's a buck away, from where I'd like to go long on it.

anoopsan
13 years ago

Two Attempts to break 1020 has failed in 15 minutes chart short term may be positive
http://niftychartsandpatterns.blogspot.com/2010

Red Dragon Leo
13 years ago
Reply to  anoopsan

Looks like we are going rally tomorrow.

anoopsan
13 years ago
Reply to  Red Dragon Leo

Yes a small rally possible

Red Dragon Leo
13 years ago
Reply to  anoopsan

They are just consolidating for a big move outside of the falling channel. It should happen tomorrow, I think.

Sir Woody Hackswell
Sir Woody Hackswell
13 years ago

One big friggin doji!

Red Dragon Leo
13 years ago

Yeah… that sure makes it easy to forecast tomorrow! My forecast is… “I don't know”. After all, that is called an “indecision” candle. LOL.

Everything tells me we are about to start a big rally up, but I expected that 1040 level on Friday, not today. So what's next? Beats me?

Geccko23
Geccko23
13 years ago

Russell 2000 made a new closing low and practically finished near the low of the day. I wouldn't consider that bullish. Breadth also finished slightly negative. But today was the day I was looking for. A penetration of a key support level followed by a one day bounce. 1987,1929,1930 all had similar days although '87 finished on the high of the day.
Just hear Mark Hulbert interviewed on the radio and he said according to TrimTabs data all the historically wrong way traders are piling into the long leveraged ETFS even with the market dropping hard last week. I am not so sure Atilla can be claiming to be following the smart money. Any I checked the last two COT reports and if anything the retail traders are net long according to the two mini contracts which is where they would be concentrated and commercials seem to be net short.

Red Dragon Leo
13 years ago
Reply to  Geccko23

I'm confused on today's action too Geccko. We are very oversold, and should rally up anytime now. But the candle we put in today looks quite bearish still.

The bulls can say that we are consolidating before a move higher… and they may be right? The bears seem to be out of the market now, and into cash or long.

Certainly, a big move is coming, and it appears like it should be up… but will it? I just don't know what to think at the moment.

By the way, do you have a link to hear Mark Hulbert's radio interview?

Geccko23
Geccko23
13 years ago
Reply to  Red Dragon Leo

Go to http://www.knx1070.com Click money and it was during the business hour today that Hulbert was interview around 1:40pm. I can't find the interveiw. It looks like one would have to subscribe to the podcast to get today's session. But they archive all the older podcasts. It's called the business hour with Frank Mottek (sp)…..Hulbert also writes a column at cbsmarketwatch.com. You can probably find the same information over there.

Geccko23
Geccko23
13 years ago
Reply to  Geccko23

Haha!!!! Hulbert does have column over at CBSmarket watch.

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