- An increase in volatility and failure to penetrate and maintain new high levels. We had a sharp selloff yesterday on top of the sharp selloff today. Thursday had a 18 point intraday selloff. Friday had a 23 point intraday selloff. Check.
- An increase in volume on a volatile day where the averages don't close too far up or down. Check.
- Selling on positive news. The nonfarm payrolls report was exactly what the bulls were waiting for and they bought it. But they ran out of ammo and couldn't hold the fort for the 2nd consecutive day. Check.
- Gold sells off hard. Gold was a key holding of the momentum fund manager and it cracked big today along with a stronger dollar. It is down $55 as I write, or 4.5%. Check.
Friday, December 4, 2009
Buying Exhaustion
The volume was epic today on the ES. We reached 2.9M contracts traded, which is what I wanted to wait for before I put on my swing short. So here was my checklist for a top:
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
I thought the mkt and gold went down because the dollar went up 1.3%. Which is too much for one day.
So my outlook is flat to slightly positive for Monday as the dollar corrects.
Also, the drop in unemployment was because of seasonal hiring. Which will last for one more month.
By the time that is over in January, the economy will have strenghtened further.
The outlook remains bullish again for now.
LONG BGP @ 1.14
I'd love a sell-off. I hope you're right. I'll participate. -Petsamo
Post a Comment