Thursday, May 9, 2013

Morning Charts 05/09/13 SPX /ES

I'm absolutely positive that every trader here at STB had equally as good trading quarters as JPM and BAC.  Wait, you didn't hit a perfect 100%, making a profit 60 out of 60 days last quarter? You are telling me that with this DOW action since November you have not at least batted 900?

What's your problem? I mean it's not like there is anything wrong with the economy. The global financial system is chocked full of liquidity. Heck our banks are so flush they can even pull loan loss reserves out to boost their earnings prospects. Add to that the Fed is pumping in $85 billion per month and Japan throwing in another $75B. How do you lose when there is no volume and a billion false bids lifting everything in sight? Heck, sleep in, have a huge lunch, take a nap, hit the buy button at 3:30, sell at 3:55 and go hit the links. It is not all that difficult folks.

Technicals schmechnicals. Tops? Ha! I see all those various historical measures reaching epic proportions. What do they matter now? This time is different, right? I mean the Fed and the government have our backs. They are not about to stop this gravy train no matter what sort of valuations or indications exist. This is the run for the ages. Come on in, the water is warm and all are welcome. The more the merrier. They won't be selling into your increase in equity allocation. That would never happen.

On to the markets -

Honestly, how do you make sense of anything right now? You can't. 100% trading accuracy? And it has happened several times before? Really? And we're supposed to sit back and marvel or respect that? HA! And there are some that still will stare you down and call you a fool for thinking the markets are rigged. Go figure. Never get in the way of a man and his raging portfolio. All is well, it will never end, this time is forever so bears go back to your cave and lick yourself.

There is a DOW chart above. Just one day after the epic 15000 close, and they make 15105 the next. These folks don't miss a beat. As mentioned in the comments section, we were haphazardly discussing 1700 SPX a few short months ago, now what looked like a possible target early next year is on pace to get dusted  this month, and 2000 can easily be projected. How bout a four figure RUT. Yup. RUT 1000 is easily in reach. Just amazing stuff.

Minis 4hrm - There are three channels in play. The green is the largest and longest. It dominates and controls everything. Then there is the blue channel which started and ruled March trade for a while. Then there is the yellow channel that is controlling things now. Of course the Fed's favorite formation (and I guess the ones the HFT algos understand the best) is the channel up. These patterns have really controlled trade over the past year or so.

Minis 15m - drilling in we find the most recent formation (inside all of the above). It's like a megaphone/channel thingy. Note really sure what that green thing is, but one thing for sure is that its upper diagonal is resistance at this time. Of course just above is the yellow and green resistance. So your support and resistance numbers are all right there. If for some really odd reason things begin to fall I'd pay attention the the ma's and where they are. Of course I'll give you all that when and if necessary in the comments below.

If you want to see a cash chart be my guest, I got bunches of 'em in the chartbook here. I'm resting on the two P's now. I'll continue to scalp long and short and make my dimes and run like hell. I still contend Cyprus lit the fuse and it is only a matter of time now. They can only pull so many rabbits out of the hat. Like the pension "promise" GDP lifter yesterday, give me a break. Let 'em pull all that crap, cause both you and I know what happens in the end.

As usual more to come below. Keep laughing and always have one eye on the target. We'll all see it when it breaks for real.

Have a good day.

GL and GB!

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