THE DOT - if this turns orange or red be alert

Monday, May 10, 2010

SPX weekly update

As expected we have the Monday rally and it will be in historic proportions. The pendulum of insanity swings into the other direction. From Tuesday to Friday we had following ISEE sequence 95,65,64 and 59 which is a accumulation of puts I have never seen before and priced at 40 VIX at Fridays close - that will swing back as some people have to adjust aggressively their books hence a lot of market moves will be forced by derivative plays rather so it could be really a 1-2 day thing as I thought last week it would but the massive intervention by the EU might even keep that up for a whole week that is something only the market can tell us. My best guess last week was that we would repeat the drop in slow motion thereafter and so far I do not see a reason so far as sentiment is still very high a weekly charts are crying sell. We will have to wait for 24h to evaluate where to put up the shorts again. Since we might get more intel on SEC and EU - basically the assumption remains that fundamentals are eroding even the phony job increases came by 188k from birth-death cheating. Again taxpayers bail out banks and this time the ECB will produce trading profits for them with the QE measure ( buying bonds). Just buying time and bankrupting the system on a bigger scale. The question is not if a crash comes only when and from what level but do not get trapped in any buy stock schemes since we have now 2 conflicting systems working as Obama urges Americans to spend money they do not have and Europeans who have savings will even save more. I do not think this will be a happy summer season at all as we get very evil astro aspects throughout summer with solar and lunar eclipses in cardinal signs starting with the lunar eclipse on 26th June exactly on the grand cross with SATURN, URANUS and Pluto , which means the debt crisis will see even a higher level of distress this time the spotlight might rather be on America as Americas Venus gets afflicted. More on that later this week as the picture and price levels get clearer the less likely scenario is a double top the other is the market might run into resistance around 1160-80 within 48h.

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