Wednesday, May 5, 2010

Euro Capitulation

The holders of euro are totally capitulating today, and I see it as a long standing bottom. I don't know what that will do to the market, because the correlations are getting weaker, but I think we're near a bottom price wise, if not time wise. I am frankly surprised at how quickly traders have gotten bearish and are looking for more downside. Funny thing is, they are just looking for a few percent. Yet from their commentary, you would think the market has to get to 1000 before bottoming. I think its too late to take any short positions for more than just daytrades. The euro panic seems to be signaling that we are almost done with the selloff.

4 comments:

Anonymous said...

are you serious market owl... give me a break you look for a short and have been bearish for weeks and we get a tiny pull back and your turning bullish wtf...

Market Owl said...

I'm telling it like I see it. I don't see much downside from here. We may go to 1150, but that will be the toughest 15 points you'll try to make facing definite risk of a 40 point up move.

Anonymous said...

The market might get a small bounce higher; then continue lower. Next resistance mark is 1136.

Petsamo said...

There's no logical reason for the sell off. Greece is old news. BP is done dropping. We're getting a bunch of good news and good earnings.