Thursday, June 24, 2010

Dailys Look Like Crap

OK, so the divergence call below worked for a nice 12pt corrective pop. In a normal market that would have been brilliant, here, LOL, not even worth a days pay.  So much for that. I had fun playing in TNA and TZA all day playing the 1m chart. I do know I was not the only bright mind expecting a higher pop today for this corrective. Now the 30m divergences are really popping and the 60m is bottoming, but I am finally a believer in where the dailys are headed. DOWN. This morning I gave the 1050 range for a bottom and now I'm thinking there is a possibility of it being worse. A lot worse if I 'm right on where I finally think we are in the scheme of things. (came a step closer to that with the form and function of today's action.)

I'm assuming the charts are foretelling a bad consumer confidence number and GDP report in the morning. I believe the corrective has ended and the move today possibly confirmed that. A bet on manipulation would be in order if the volume is low in the AM, but I have a sneaky feeling this market is possibly about to puke up a lung. Again, confusion reigns not only at Shanky's but at other respected sites as well. The market (er the bots, excuse me) have done a miraculous job fending off the news of the impending double dip in housing and the plethora (Soros et all) of other bad data. They can't keep this pace up. Something has to give sooner than later one would think. On the other hand, were dealing in a 100% controlled environment, so you take what you can get I guess.

So, let's remain with a watchful eye on the form of the fall and follow the dailys to the bottom and see what happens there. Worst case scenario is they embed and we have to wait on the weeklys to come down as well. Lord help me it this thing whipsaws again. Maybe I get that 1020 to 1000 I was looking for with this fall originally anyway. 

As always, GL!