I dunno Red. The market closed above key resistance levels today making a lot of shorts cover. I almost covered myself. So what better time to take the market down? The daily's may look up but don't longer time frames trump them out? And, we are overbought on the McClellan Oscillator. Everyone in my book is waiting for 1127 to get short. It's impossible to know the answer. Probably the best thing for me to do is take some shorts off the table tomorrow and hang on to the other 1/2.
Point of clarification: it's a hike in the interest rate for the discount window. The interest rate that most of us care about was not actually changed.
That distinction seems not to matter, but it might as some point.
Monica, they closed the market today above a few key level of 110.35 spy, and that was the 2nd day in a row. That confirms the move, and it will now be a lot easier to go back above it.
I don't think we are quite ready for a huge sell off yet. I think we will choppy around next week, and possibly go up to the next major resistance level of 112.00-112.50? Don't know if we will make it there or not, but starting the big sell off now is just too easy… and you know it's not that simple.
If it was, everyone would be rich. That 107.38 level would be a nice B wave down, if you counted the 104 low to 111 high today as wave A… which would leave us with wave C up next week.
I'm not a great EW person, but that looks pretty simple to chart out to me. I just feel that rolling over here, and starting the next leg down, is too obvious. And you know what that means… if everyone thinks it's going one direction, you should go the other.
The daily charts are still pointing up too, so they need a week to peak out and roll over. Plus, the weekly needs a more defined bear flag. It's coming, but not yet…
Thanks Red. Is this the catalyst that will bring us down to 1020 or just a blip in the road that will be shrugged off before we get to 1130? I guess only time will tell.
You're thinking is right on ben. There will be some selling but they will try to close this at the current pain… which is now about 110. I'm expecting selling early on, and then the PPT will come in to save the day, and close at 110.
If you see 107.38… get out of all shorts, and wait until the chop fest is over next week.
Yes Earl,
It's not for us… only the banks care about this hike.
Check this out Red –
http://stockcharts.com/h-sc/ui?s=$nymo
I dunno Red. The market closed above key resistance levels today making a lot of shorts cover. I almost covered myself. So what better time to take the market down? The daily's may look up but don't longer time frames trump them out? And, we are overbought on the McClellan Oscillator. Everyone in my book is waiting for 1127 to get short. It's impossible to know the answer. Probably the best thing for me to do is take some shorts off the table tomorrow and hang on to the other 1/2.
Red,
Excellent post.
Point of clarification: it's a hike in the interest rate for the discount window. The interest rate that most of us care about was not actually changed.
That distinction seems not to matter, but it might as some point.
Monica, they closed the market today above a few key level of 110.35 spy, and that was the 2nd day in a row. That confirms the move, and it will now be a lot easier to go back above it.
I don't think we are quite ready for a huge sell off yet. I think we will choppy around next week, and possibly go up to the next major resistance level of 112.00-112.50? Don't know if we will make it there or not, but starting the big sell off now is just too easy… and you know it's not that simple.
If it was, everyone would be rich. That 107.38 level would be a nice B wave down, if you counted the 104 low to 111 high today as wave A… which would leave us with wave C up next week.
I'm not a great EW person, but that looks pretty simple to chart out to me. I just feel that rolling over here, and starting the next leg down, is too obvious. And you know what that means… if everyone thinks it's going one direction, you should go the other.
The daily charts are still pointing up too, so they need a week to peak out and roll over. Plus, the weekly needs a more defined bear flag. It's coming, but not yet…
Thanks Red. Is this the catalyst that will bring us down to 1020 or just a blip in the road that will be shrugged off before we get to 1130? I guess only time will tell.
I'm working on tonight's post now Monica, and it should be up by 10pm est. And yes, very fishy indeed.
I can't believe the fake print Red. Incredible. Thanks for posting it. I will be amazing if that becomes the support level.
You're thinking is right on ben. There will be some selling but they will try to close this at the current pain… which is now about 110. I'm expecting selling early on, and then the PPT will come in to save the day, and close at 110.