Tuesday, August 9, 2011
FOMC Announcement
The market is set up for disappointment going into the Fed meeting. We are just up too much on the hopes that Banana Ben will save the day. He probably will say something about discussing QE3, but I don't think what he does will be enough to satisfy the daytraders. It could be a shake and bake and then run higher into the close. I don't think we'll have another weak close today because most of the margined players probably got taken out yesterday.
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8 comments:
Everyone looking to fade this rally, therefore don't fade probably the right call. 1987 was one big drop and that was the lows, it was a crash where the year before in 1986 a death cross had failed and it rallied above the right shoulder... very similar set ups.
Yes, similar to 1987, which means we probably won't shoot straight up over the next couple of months, but probably won't go much below 1100. Steady uptrend most likely from here with a retest sometime in the fall.
any predictions on where we close?
Up. ES 1147 is not out of the question.
Good call, Owl.
We'll continue down into September. Will break 10,000 in Dow and possibly 9000.
we may go down further this fall, but we probably retest 1225-1250 first
You have hit lows on S&P500 in Swiss Franc terms just like 1978, the charts look exactly the same as 72-74 crash followed by the rally 74-76 then the next leg down 76-77. The 76'crash also occured from approx 15x earnings. This mkt doesn't go much lower than recent lows if at all, it will be volatile and rallying hard from 2012
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