The market is looking a bit exhausted at this point. I issued a BOT Short Signal in my previous post because there seems to be enough evidence building up that says we should at a minimum do a gap fill of several days ago and maybe some more downside after that to work off the … Read more
Have you ever walked on a frozen pond before? Do you remember how you walked very carefully over it and then probably stepped very lightly on the ice to ‘test it’ to be sure that it was solid enough to keep walking further? Well we may be close to a similar process in the DJIA. … Read more
Today was a clear sign of strength in the sp500. Today we printed a marubozu candlestick on the daily chart which is a clear sign of who is in control of the tape. There was almost zero bottoming tail and almost zero topping tail on today’s candlestick. Signs of strength are great, but they still … Read more
At Mid Day the sp500 is trading flat showing nothing dramatic or shocking. It appears that this will continue to be the case by the end of day today. Sometimes I have written posts half way through the market trading day and then by end of day the exact opposite occurs to what I was … Read more
Today the sp500 printed what looks like a perfect hanging man candlestick. Since the entire rally starting in early September 2010 I have not seen such a perfect hanging man candle. It is called a ‘hanging man’ candlestick because that is exactly what it looks like, a man hanging with his legs dangling. Today’s hanging … Read more
The IWM ETF is signaling to me that the top is officially ‘IN’. I don’t know why I did not notice this before, but I am glad I have noticed it now. This volume sell signal in the IWM ETF has just rocketed my confidence in the short side of the market with only 3 … Read more
The Composite Man according to Richard D Wyckoff is supposed to be the all knowing market force, the big money or the truly all knowing market force that is the primary trend direction of the market. He talks about how it is important to try to get inside the mind of the composite man in … Read more
I went long the VXX and the SDS again today after being stopped out yesterday. As indicated in my previous post, the BOT short signal is now live again as of the open in the sp500 today which was 1178.64. I can really see very clearly how being short the market too early is such … Read more
October has always been a very interesting month to me as far as the markets are concerned. The leaves change color and then just drop to the ground like a dead weight. Strange isn’t it how the markets sometimes seem to do the same during this famous month? But we are already 2 weeks into … Read more
Despite me issuing a BOT Short Signal today I have to confess that by the close today there was no major sign of weakness in the sp500. On the contrary the market rallied to an almost unchanged close right in the last few minutes. If the sp500 closes above yesterday’s high of 1184.38 tomorrow then … Read more