Today was brutal - but I did not move off my short position. I have been focused on the ES mini contract as my day-to-day income generator. There is no denying that the market hit that magic number today - and I guess the squeeze is in order for all of those who are short.
Things are bubbling - even the Bank of China’s Zhu Sees ‘Bubbles’ in Asset Markets. But that won't stop the liquidity train. It would be a lie if I said I was not worried. I will be watching the futures market and tomorrow's session to see where we are headed.
Don't under estimate resistance at this level. There was a very big sell at the close.
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6 comments:
I had to take some losses, but I still have a big position. Definitely not what I expected. sometimes you are the bug, sometimes you are the windshield. The PTBs want the market at a certain point so that when we start to head back down we will have many resistance points to hit as it happens. In addition, killing the shorts enables CDS spreads to tighten, etc.
Hi David ,
I stayed pat as well , funny this week is what I expected for last week and last week was what I was expecting next week. Thats what I get for expecting.
Last Night I said it reminded me of the run up that started July 13th , funny M. Whitney was on CNBC then as she was this am.
It looks like this market will only go down when " They" want it to.
David to kph commit about resistance on the way down ( when and if we go that way ) I dont really see much resistance at the down side to 1007 or 1000 do you ?
Upside if we can hold 1040 , 1050 then 1060 ?
Best of Good Luck , we all need it
Silver & gold/gold miners are the only stocks that are trending up by the indicators that I follow. I'm concerned about a dragged out consolidation in the S&P, etc...after all, we did have a big rally. The VIX may be back-testing, but is otherwise screaming for a big drop in U.S. stock prices. Good Luck David O!
On the downside, I am still looking for 978 and then 960. Funny how far away that seems! Remember, corrections are sudden and violent. Everyone expects the market to run to 1060. Who knows in this casino!
Sadly, it looks like 1060 is in the cards. That is approximately the 38% retracement from the August 2008 shelf. I still have reason to believe that we could start to pullback tomorrow. I hope we see China's and Japan's markets pullback.
Holding tight, patiently and with resolve.
Good luck out there!
http://instigator928.blogspot.com/2009/09/3-days-up-on-nasi-mega-uptick-or-new.html
Who knows?
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