First, a poll.
Oh man, we got some problems. I’m not kidding. If we break below 820, or 7 pts below our current level of 827, then that will break the only uptrend support level that the market has been relying on so heavily in the past few weeks. You don’t have to be smart to figure this out. I can guarantee that you’ll see some serious selling if (when) that happens.
If we do get a bounce, watch the 839 -840 level. This is the location of the 20-day MA. The SPX dropped 30 pts the last time the market failed the 20-day. In addition, 850 is key resistance which also serves as a psychological reversal area where the SPX has failed many times..
This one is really tough for the bulls. In the intermediate-term, the action from mid-January till now looks like a bear continuation flag. It can also be an ascending triangle, but the market has to recover most of yesterday’s losses today to even have the slightest chance for an upside breakout. If we get some bs secondary reaction rally, it’ll be time to re-short. This environment also sets up for higher probability swing trades, most of which will be entered at the very end of the day.
Focus is on the REITs, large and regional banks. They will give you the biggest bang for your buck.
What u think about STI?
If we get some bs secondary reaction rally, it’ll be time to re-short.
Explain what you mean by “second reaction rally” here, John.
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What do you guys think of the current bull market in silver (via SLV)? I figured I’d join in, although it’s hitting resistance pretty soon.
I think it’s a tradeable trend (with tight stops).
What I like about it (my silver trade) is that lately, when the market goes up, Silver goes up, and when the market goes down, Silver goes up.
My kind of trade. =]
Hope I don’t get stopped out…
Jake,
If I can guess what he means by that: If we break down below 820, then get a secondary rally after that, its reshorting time.
Nice post. Yes the triangle is still in play. I need to see it play out before I risk any large trades.
STI along with the rest of these regionals are shorts on the next bounce.
The secondary reaction rally is synonymous with a sustained bounce throughout the day.
SLV seems a bit overextended. It might pullback soon.
I’m looking to buy SRS if we get a break above 67.75 or a pullback to 60.
Hello Chart Addict,
Did you notice the morning star doji on FAZ daily chart and the evening star doji on FAS the daily charts for Monday? Very interesting, the market reaction was classic.
Yup. Keep an eye out for those patterns because they’re some of the most reliable.
So CA, was bumping up against 840 three times during the day and a feable rally at the end good enough to say this dog is gettin’ a bullet tomorrow? Or is the fact that it didn’t break down very far at any point bullish? I think bullet but I am super new at this so just really looking for your advice.
Well, it looks like Geithner is just an average guy who is borderline retarded, but also shows signs of being an idiot and intellectually gifted at the same time.
Hi john, I have a question.
I have GOOG short sell all worked out to a 95% level of certainty.
I also have a better than 90% win loss trading record, past 6 month’s ( all documented)–
So what else can I do to get more members?
Any Ideas?
Dr.Z
I think I’ll ask Gio too! He’s always full of ideas.
zstock7,
Ask Tim Sykes. You’ll have to buy his DVD first though.
Why do you even need members? If I was 90% accurate I could retire in a year or two.
Well, it looks like Geithner is just an average guy who is borderline retarded, but also shows signs of being an idiot and intellectually gifted at the same time.
Great! we have Rainman for Treasury secretary. All we have to do is keep him counting cards and if he gets near a spinning wheel with numbers, distract him with Tom Cruise.
z-
You need up the price for your service. $3.92/per month is seriously devaluing your service.
Z – You are a troll, and you spam every board with your faggy, worthless service. You want subsrcibers? Start by learning english, and being less annoying.