Here is the 5 minute e-mini bar chart for today. Earlier I said that I was inclined to sell a rally to the purple dotted line if volume remained moderate. As you can see we just hit that level and went a couple of points higher. But we also have just put in the highest volume bar of the day at a price level where volume should have remained moderate. This makes me think this rally still has legs and will continue up into the 836-40 range. However, I still think the short term trend is downward.
8 comments:
went up on breaking news:
"Deal Reached on Economic Stimulus Bill: Senate Majority Leader Reid"
I'm with you on this one, Carl. I think a short at 836 to 840 is in order.
Good luck!
I am long, we are going to 900
we are going to 900. Todays pull back from the highs is just for the bill to actually pass thru..makes me kind of think is this market actually controlled by some folks..or does everyone think the same..even though there was definite intent to go higher--was cut short..to say go back and wait for the vote before we can go higher
There is too much overhead supply to sustain any rally of any significant size. One day wonder is all we can hope for.
P.S. there is still too much bullish sentiment out there.
Rick B.
Hi,
Quick question. Why are your lines drawn through the middle of price instead of at the extremes?
Thanks for the info, I love the blog......
Carl,
thanks again for the day! Find your opinion about crowd's sentiment (NY times) very interesting. Greetings from Germany,Val
In the absence of any strong fundamentals for business, stocks have only one way to go. Down!
The rallies are fake, maybe even caused by bears, just to create some selling opportunities at higher prices.
In the absence of possibilities for higher earnings by most companies, only suckers will buy into the rallies.
A short position taken early last year, AND HELD, would have generated more profits than what most traders have probably made, trying to call the short-term turns of the market. It is a waste of time. Just short and hold and go surfing!
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