This day will go down as the biggest blow-off text book reversal day in the history of mankind. Group think is a manifestation of your own much more deeply rooted psychological impediments. Mental handicaps. Note it for the nth time and move on. All the littles had textbook short written all over them on the [...]
Today’s housing numbers were a game changer for me. Sometimes, one’s brain learns to tune certain things out while sitting on the trading desk. At times, this filter becomes too good and blocks out important facts. Generally, the a.d.d. prevalent amongst all of us on the trading floor (as if it’s a prerequisite) keeps us [...]
Using DeMark’s TD Sequential PERFECTED COUNTDOWNS “Perfected” Buy Countdown — Low of Bar 13 must be less than close of bar 8 to give some assurance that market is really oversold “Perfected” Sell Countdown — High of Bar 13 must be greater than the close of bar 8 to give some assurance that market is [...]
Game Plan – Ride bear squeeze while preparing for bear raid Campaign – Reflexive strategies off Fibonacci levels March 15 Let’s see how the week starts out. It looks like there’s room but perhaps a quick pullback early in the week? Or, we could see pent up retail demand trigger a gap up on Monday, [...]
As reported by Institutional Risk Analytics, the following is a list of the 19 domestic banks taking part in the so-called SCAP stress test. These banks are likely to be under the “too big to fail” category. Thus, if they fail their stress tests, they will be receiving another injection of public funds: Holding Company [...]
The real action behind the scenes. This is monumental. No, “GENERATIONAL”. No… it’s… it’s … Politics aside, the reality is thus, according to my dogma, the Financial Times: Lawrence Summers, senior economic adviser to Barack Obama, US president, told the Financial Times recently that the Group of 20 countries should agree to boost government demand. [...]
“Cuz I’m free fallin, now I’m free fallin, free falling…..” General market theory suggests sharp sell-off’s need to be on high volume in order to culminate into a tradable bottom, ala the 10/10 and 11/20 lows. However, should the market make new lows on very little volume, as we have seen this past week, the [...]
The market gapped down big and closed below the open on Monday for a second day in a row. Selling was heavy but not excessive or extreme by any stretch of the imagination. The major indices all fell between 4% to 5%. Breadth was deeply negative, which is the only silver lining right now. The [...]
This is a chart of Crude and ERY. ERY scale is on the left, crude scale is on the right. However, the crude scale is inverted to make it easier to see the actual divergence trade. You can clearly see the divergence in the first half of February. Crude proceeds to head lower while ERY [...]
What is the TRIN? Richard Arms developed Arms index, which is better known as the NYSE Short Term Trading Index. The indicator is used in a contrarian manner to detect overbought and oversold levels. The indicators calculation creates an inverse relationship with the market. In the most basic analysis, a rising TRIN is bearish and [...]
