I continue to believe that it is a mistake to even THINK of going short until we start to see some early signs of a bearish weekly MACD downward cross. At least up until last Friday, the weekly MACD has not moved into such a stance yet. It is going to take price closings on … Read more
Today was one of those days that I would have thought had the potential to be really bearish. The GE and Bank of America ‘bad news’ really should have been the bears chance to take the DJIA down 200 to 250 points and close at the lows. But once again the bears failed to do … Read more
Once again the bulls completely own the show and gapped the market up today and closed very strong and on pretty healthy volume at least compared to what we were seeing before. I once again refer you to this chart of the SP500 that shows we still have some time left before we actually hit … Read more
So much for the short term sell signal on the SPY. The Intel earnings are likely to blast the market higher tomorrow. It will be interesting to see if they are able to close the market at a new high or if the rally gets sold off by end of day for a price bar … Read more
You might have to start calling me ‘flip flop Tom’ or something similar but I gotta tell you the recent action is not too encouraging from a near term perspective at least based on price and volume. Yes it is true that I don’t believe the real correction will get under way until we break … Read more
I spent a bit of time again looking at comparison charts over the weekend between the mid 1970’s SP500 and DJIA and our current market. It really is quite a fascinating series of comparison charts when taken into context of the larger down trend lines that defined the historic bear market. Perhaps the most interesting … Read more
If you look through some of my recent posts you will see how I was turning heavily bearish at certain points in some of my commentary lately. I mentioned about how I was going to start looking for short candidates and focus mainly on the short side of the market and not even consider the … Read more
The tape action in the market today tells me that it is in no mood to fall apart quite yet. The cycle date of the 18th of October could very well be an inversion where we actually see the market go higher right into that date. The fact remains that the weekly MACD is no … Read more
Today the SP500 index climbed right back up to the short term bearish channel line as defined by the red line in the chart to the left. The market also pulled back right up to the light blue line which represents the shorter term wedge which was broken to the downside several days ago with … Read more
The action today in the broad market was a little bit confusing. It was clear after a few hours of trading that the market already knew what the news was going to be today and that is probably why we did not see 200 or 300 points down on the DJIA. It was just an … Read more