THE DOT - if this turns orange or red be alert

Monday, May 4, 2009

SPX update - Fools are rushin in

SPX extended wave A up and hit the uptrend resistance even. Sub-sectors like the XBD have reached the goal today marking a 13 as everybody seems to have jumped on the bandwagon. Not really everybody as the retail ( Mainstreet sits majorly still on the sidelines but luckily enough we get now what I was looking for that people who missed to get out will have a chance to get rid of their stocks in summer around 1000. starting tomorrow the pullback should start as all the evergreen bulls like Leukovich from Citi came creeping back from his hideaway ( he was a bull all the way down ) and claims the bulls have more to go. Its interesting that about 2-3 weeks ago all the major firms at a much lower level were very sceptical from Goldman to Morgan Stanley and now they send the good cops in like Goldman Ms always wrong Cohen ( in this century). We are heading for a fake out Full Moon the coming weekend as the moon will make a square to Jupiter and Neptun. That means people have an exaggerated optimism based on wrong expectations. As we also enter Mercury retrogade by the 6th we can expect plenty of liars showing up again as Paulson did at the last one and the TARP was released but never executed as negotiated.

Beneath the current earnings situation which is not good

Excerpt

As of Friday, May 1:
The blended earnings growth rate for the S&P 500 for Q1 2009, combining actual numbers for companies that have reported, and estimates for companies yet to report, rose to -35.1% from -35.3%.
I
f the final growth rate for Q1 '09 remains -35.1%, it will be the first time the S&P 500 recorded 7 straight quarters of negative growth since Thomson Reuters began tracking the data in 1998.At the start of the quarter, the estimated growth rate for Q1 was -12.5%. (Data provided by Thomson Reuters)


No comments:

About Me

I am a professional independent trader