Look at a candle chart a year back and see how many times a big red bar has stopped the IYR advance for at least a couple of weeks. A big red bar has always been extremely bad.
Makes good sense… as I said, always take a nice profit. I just think it might touch the downward sloping trendline that intersects around 35.40 tomorrow morning, and then bounce. Hard too say, but a bounce will certainly come soon on it.
An important thing to remember about silver is that it trades much more solidly throughout the day and into the overnight session than index futures, so silver could gap up huge tomorrow morning because it’s cycling through its normal re-test of the breakdown.
Unless you trade the futures contracts, you MUST take that into account with things like ZSL and SLV. That’s why I personally got out of my shorts on that crash.
I think the first warning that today was a shakeout was all the posturing over the jobs report. I doubt Friday will be as bad as they think, and if it is, the market may put in a bottom that day. Could it be that June 10th is a low? Yep. So I’ll stay nimble here, and although I’m broadly bullish, I’ll look to be hedging into that date if the selling continues.
If we bounce in the morning, then we’re going down again tomorrow. If we gap down in the morning, then a short term bottom should be put it. Either way, until we break the 1250 level the market can go back up over the coming weeks.
ES daily chart with support levels: http://niftychartsandpatterns.blogspot.com/2011/06/es-daily-chart-with-support-levels.html
Look at a candle chart a year back and see how many times a big red bar has stopped the IYR advance for at least a couple of weeks. A big red bar has always been extremely bad.
Puetz. Do you want me to elaborate.
it was a surprise drop, eh Red?
Well, new moon tonight.
DOW -279 points
FYI – we’re inside the march 1st SPX candle. nothing much has changed in 3 whole months.
what could be better?
the market is a sham full of easy money. (with no easy way to drink of it)
live well, don’t let it eat your soul.
-GG
GG chuckles.
Makes good sense… as I said, always take a nice profit. I just think it might touch the downward sloping trendline that intersects around 35.40 tomorrow morning, and then bounce. Hard too say, but a bounce will certainly come soon on it.
To demonstrate this, look at how silver bottomed a few days ago and the US regular hours traders didn’t see a dime of that move.
An important thing to remember about silver is that it trades much more solidly throughout the day and into the overnight session than index futures, so silver could gap up huge tomorrow morning because it’s cycling through its normal re-test of the breakdown.
Unless you trade the futures contracts, you MUST take that into account with things like ZSL and SLV. That’s why I personally got out of my shorts on that crash.
I think the first warning that today was a shakeout was all the posturing over the jobs report. I doubt Friday will be as bad as they think, and if it is, the market may put in a bottom that day. Could it be that June 10th is a low? Yep. So I’ll stay nimble here, and although I’m broadly bullish, I’ll look to be hedging into that date if the selling continues.
If we bounce in the morning, then we’re going down again tomorrow. If we gap down in the morning, then a short term bottom should be put it. Either way, until we break the 1250 level the market can go back up over the coming weeks.