I am short and got much shorter on this ramp so likely my comments are worth what you paid for them... McClellan at near record levels...CPC at insanely low levels (meaning every sucker and their mother is bidding calls at a rate of almost 2 to 1...that is greed/blow off top and almost always a C/I)...On the daily spy chart we are approaching overhead resistance plus we have tasted the 50 sma and pulled back...i would expect a further pullback ass all those call buyers take profits/cut losses...if you ask me benny provided (once again) at great short opportunity for a trade...i dont know how long it will last or where we will go but i tell you i faded this pop nicely and i believe the odds favor the downside first...then perhaps we can go higher...again i would watch that trenline we have been working...tomorrow it should be running in the 78-78.9 area...
EDIT: been thinking more about bernanke actions...
I am a little disturbed by them...basically i see it like this...FDIC FED and US TREAS have backstopped/guaranteed/bailed-out/have equity interests that total trillions in bank and bank related things...the US TREAS and FDIC have guaranteed huge amounts of assets, money market funds, deposits & debt...The FED has done so as well but arguably more prudently with haircuts and overnight repo's...but today bernanke made a HUGE bet that all will be well as he officially hitches his wagon to to the US TREAS and FDIC wagon by buying 1.25 tril in their debt...Ill write more about this subject later but if you have any thoughts feel free to leave comments...I appreciate any thoughts...
2 comments:
I'm with ya on the short entry. Various McClellans and other oscillators, with an exception or two, are near, at, or past the "high mark".
I was scrambling with them all at once and managed to get what I did.
Booms actions today? Can't seem to find or hear of any realistic positives about it, other than short term delusionals. I respect Boom for taking the leadership role, beings Timmy and Bam Bam are lacking. I think it's all just based on hope.
I am a little scared by boom boom's actions today...Its almost as if he decided to fall on the grenade and hope his helmet contains the blast...
what if things get worse???
why did he decide to do it now???
what is the end game for this scenario???
will ECB follow???
what do the chinese think of this???
does he really think this will reflate???
did this work in japan???
did japan have inflation or just currency de-valuation???
i have a million questions about this stuff and other than cnbc pumpers I have yet to see a reasoned argument about how this is a really good thing
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