Monday, July 18, 2011
Trend Down Day
Friday was the short squeeze to clean out the weak shorts, and suck in the overbullish longs before the market continued its mission lower. Expecting a classic trend day lower with the lows right near the close. The market is more complacent today compared to Thursday even though we're lower. Amazing. We broke down that cliff of worry with a hydrogen bomb.
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4 comments:
How is market complacent when vix is up 11%?
VIX is the lazy man's fear gauge. I believe its very overrated and have done a lot of backtests with it and usually have been disappointed.
so we've gone down over 4%...when do we rally??
This is dragging out longer than I expected. The bulls remain stubborn here but some are losing their faith. Considering what is going on in Europe, their could be a panic selloff if they come up with just band aids on Thursday at the EU summit. I am sure the shorts will cover ahead of it to complicate the action over the next 2 days.
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