Friday, August 22, 2008

08.22.08 - Rumor Mill Continues work its market magic: this time to the upside. However, today's chart lists five of the eight or so reasons I took a short futures position this morning where indicated by the circle. I'm already out (edit: why? bounce off of R1, acting as subsequent support, a technical trade) - it was a scalp - but perhaps you will find it instructive.

Short-term RSI's now exceed 80 in several markets - quite high, but perhaps artificially so based on the big swings in quick succession. Today's move puts us back into the recent trend-channel, but I'd continue to exercise caution. Enjoy your weekend!


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11:20AM PST UPDATE: Hmm, think yesterday's oil move might have been a squeeze?

Also, as everyone is saying, note how low volume is! Adjusted Cumulative Tick is VERY strong, but R2 continues to hold back the SPY ($129.45), but with all these tests perhaps it will break. Five-day moving average is heading up. Be sure to check out the weekly recap late before Monday's trading.

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