Thursday, May 7, 2009
Yesterday someone was again quite eager to trigger o short covering and print markets higher that's why we did not get a reversal pattern. It reminds me very much of late 2006 and early 2007 as we would always joke that PPT (plunge protection team) would force the shorts to cover and back then they had the stupid CEO's of many companies on their side who assisted with pathetic buyback programs which are looking back dead wrong and very expensive for regular stock owners. Anyway this week some one was very busy buying markets up in the last 10 minutes to force shorts to cover which was very obvious and since Goldman runs half of the NYSE volume these days its not hard to guess who might be behind it. Still we can recognize that the NDX is running out of momentum and tends to be sold and today's new lows for this week day thereby closing the gaps of Monday is a clearly bearish signal. As I stated yesterday start building short positions as this market is clearly topping out and all the fools rush in into banks yesterday drove prices higher as banks are clearly overvalued now again. Buying the rumour and selling the fact might be the end of this pathetic leaking strategy of Geithner I believe. At current levels NDX gave up all weekly profits which would clearly signal if achieved tomorrow that markets are about to turn around for wave B down. We are at the edge of this wave as price actions proves clearly today and a sell off with a magnitude of 10-15% is due. NDX made roughly 400 points up and should give back 150 at least ( almost 50 are gone as I write).
Posted by getagrip at 9:34 AM