Friday, September 30, 2011

Morning Post 09/30/11, SPX

"In case you haven’t noticed lately, the market doesn’t move on good or bad earnings or economic data, it moves on political rumors and innuendo about government’s willingness to continue the TARP/cheap money/QE lifeline to the terribly over-leveraged banking sector." Kinda says it all. This from Guest Post: The Politics Of Consistently Bad Legislation | ZeroHedge.

I know you hear Soup, myself and others constantly moaning and groaning below about the rumor driven BS farce this market has become. It is always nice to get confirmation from other more respectable sources than this lowly blog that has yet to emerge to the lofty heights it deserves. STB 3.0 is on the way! Then the street cred grows.

What has become of this country and how screwed up is this administrations actions? Read this and try not to puke - State Gets $5 Mil Bonus For Food Stamp Sign Up | Judicial Watch. "In its quest to promote taxpayer-funded entitlement programs, the Obama Administration has actually rewarded one state with a $5 million bonus for its efficiency in adding food-stamp recipients to already bulging rolls." You can only ask, WTF? I guess you can call that a kick back for increasing the democratic voting base.

Nah, there was not any pressure from the White House to do any of this. Chu was just a really nice guy trying to help out a struggling company with taxpayer funds - "Energy Secretary Steven Chu acknowledged Thursday making the final decision to allow a struggling solar company to continue receiving taxpayer money after it had technically defaulted on a $535 million federal loan guaranteed by his agency." Chu takes responsibility for a loan deal that put more taxpayer money at risk in Solyndra - The Washington Post. White House involvement? Don't be silly.

SPX Daily - So many options and confusion reigns as price wallers in the range bound abyss. Note all the blue arrows (indicating caution) on the indicators and the level of those indicators as well. Another confusing point is the buy divergences that are present. They would say that last low was a nice spot to get long. I can't (and am not) buy that at this time. STB still looking for 1040 or worse. I'd like to see that blue falling wedge play out.

SandP Minis /es 15m - Looks like that orange channel I was working with yesterday worked out pretty good. As you can clearly see the upper orange channel resistance has held nicely since the close yesterday and is pressing price down. Now see that blue support diagonal that price is being compressed into. What does that coincide with? Why 1136 support of course. There is nothing to stop price from the 1110 area today if that level fails.

Minis 1m - I will refer to this chart in the comments below. I will also update this chart during the day if necessary. Pink line is the VWAP and the blue bands are the VWAP bands.


Have a great weekend.

GL and GB

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