Friday, August 22, 2008

08.22.08 - Rumor Mill Continues


...to 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!

HAPPY BIRTHDAY GARETT!


Have you voted in the reader poll to the right? It's just for fun to stimulate some interaction here, but do weigh in! I'll be keeping that open until at least thirty responses are logged. And please leave your comments on this post.

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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