Tuesday, August 24, 2010
Give Up
Everyone is nervous ahead of the existing home sales data. I don't know who is predicting it to beat consensus. Everyone is expecting a horrible number, so you have traders selling ahead of the number. Plus, it is getting clear that we are going to have a weak economy for the next few months. That is all being factored in to the prices. I expect us to rally from this gap down and finish near the highs. If we don't, this market is in serious trouble.
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9 comments:
When is the last time we saw a large intra day reversal? We never see it anymore, likely a side effect of the mo-mo bots. I could see us needing to wait until tomorrow for a turnaround. I don't think a bad day today augurs anything.
That said, this is a classic setup for an intra day reversal if the still do exist. Big bad number that everybody knows will be bad. Classic sell the news.
Tsachy Mishal, the last time I saw a large intraday reversal was this past Friday, Aug 20, 2010. A lot of hammers or long tails were formed.
I am talking about a market that opens down big and ends up big. Not one that pares some losses.
For most of the years I traded bottoms were panic lows followed by a major intra day reversal and a moonshot higher. In the past year or so it has become a slowing of selling pressure followed by a move higher the next day.
The last time we saw a large intraday reversal was on July 20. We gapped opened down around where we are now, 1053, and closed around 1080.
I used the swoon to get longer. Normally I would expect the market to rally today but I am prepared to have to wait until tomorrow.
petsy come back to us .. :-) ... it's getting boring w/o u ! hehe ... jammy.
Jam, chat4traders.com gagged me. She won't allow me to reason with her. How do I know if I'm screwin up if I don't know what I'm screwin up on? I miss you and the rest of the guys very much! :(
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