Closed all my shorts, now just waiting for an hourly close above 1077 on SPX before going long. Those of you short, are fighting the short-term trend reversal, which only results in pain. Better to take profits and sit on the sidelines for the next short entry.
Financial regulation is almost complete as lawmakers put the final touches on a new bill in the next few days. The financial stocks have been worried about this bill and have sold off accordingly in the last few months. As this saga is now coming to a close, the financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Morgan Stanley (NYSE:MS) are all starting to rally. Why when the bill is just about to be put into play are they rallying? Stocks much like the stock market and people are much more fearful of the unknown, rather than the known. Knowing exactly what these companies will have to now deal with gives investors, fund managers and traders an idea about future profitability and growth. They now have the facts on the table and can make an education decision. The unknown is always scarier than the known and in this situation, it proves correct. The financial sector is up today.
Red telltale signs of a sort of rally are there. You know something positive is going to come out of the G20 that will cause the Euro to rally starting sunday evening and in turn will cause equities to rally. That combined with all the divergences and lack of conviction to the downside today makes me doubt a large sell-off anytime soon.
I don't know if we are going to get the sell off today, or not gang. It isn't looking very bearish right now. Plus, we are going in the light volume lunch time period too.
Are they going to rally into the close, or sell off? Hard to say, but it's a little scary right now.
Closed out my SDS and TZA calls. Still holding a couple of KBH puts. Waiting for a pullback to -800 or so on the TICK to go long. Take a look at the TICK guys, another divergence. Price is making lower lows today, but intraday TICK hasn't even gotten close to its intraday lows from yesterday.
Fever just broke, I think.
Closed all my shorts, now just waiting for an hourly close above 1077 on SPX before going long. Those of you short, are fighting the short-term trend reversal, which only results in pain. Better to take profits and sit on the sidelines for the next short entry.
The market is hitting the upper trendline resistance from the falling channel. It needs to hold it back, if we are going to sell off anymore.
The dollar is getting hammer as usual…
http://blog.afraidtotrade.com/
I will cover at SPX 1077.50
Financial regulation is almost complete as lawmakers put the final touches on a new bill in the next few days. The financial stocks have been worried about this bill and have sold off accordingly in the last few months. As this saga is now coming to a close, the financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Morgan Stanley (NYSE:MS) are all starting to rally. Why when the bill is just about to be put into play are they rallying? Stocks much like the stock market and people are much more fearful of the unknown, rather than the known. Knowing exactly what these companies will have to now deal with gives investors, fund managers and traders an idea about future profitability and growth. They now have the facts on the table and can make an education decision. The unknown is always scarier than the known and in this situation, it proves correct. The financial sector is up today.
still short but very nervous.
Red telltale signs of a sort of rally are there. You know something positive is going to come out of the G20 that will cause the Euro to rally starting sunday evening and in turn will cause equities to rally. That combined with all the divergences and lack of conviction to the downside today makes me doubt a large sell-off anytime soon.
I don't know if we are going to get the sell off today, or not gang. It isn't looking very bearish right now. Plus, we are going in the light volume lunch time period too.
Are they going to rally into the close, or sell off? Hard to say, but it's a little scary right now.
Closed out my SDS and TZA calls. Still holding a couple of KBH puts. Waiting for a pullback to -800 or so on the TICK to go long. Take a look at the TICK guys, another divergence. Price is making lower lows today, but intraday TICK hasn't even gotten close to its intraday lows from yesterday.