Market Rallied? Whaaaa?

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August 13, 2008

I don’t know what is causing this move, but I’m hanging on to my shorts – heavily now.

I mentioned a few days ago that the XLF chart is shaping up. As of today that chart is broken. There is still hope, but it needs to pull back some still and that might be the reason for a general market selloff. Plus commodities and oil bouncing off their crap lows can possibly get that going as well.


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  • Guest

    Sensei, with all due respect, I think this market is indeed headed higher in the short-term (next 3 trading days or so), and much higher after a small sell-off.

    My reasoning is looking at the Stochastics here. The weekly Sto’s are just now turning up the heat, after the 60 minute had a chance to reset today.

    There is massive Bull firepower on the sides right now, and all the sentiment is quite bearish right now. I am holding long SPY132′s for the next few days. If WMT can hit its number, we could get a strong rally tomorrow.

    Are you seeing what I am seeing on the monthly and weekly Stochastics for the DOW, SPX, and QQQQ’s? I just keep looking at these charts, and all the big sell-offs come after the monthly and or weekly Sto’s are overbought.

    Also, the market seems to really have held up well with all the negative news lately, why?

  • Cole

    Sensei, with all due respect, I think this market is indeed headed higher in the short-term (next 3 trading days or so), and much higher after a small sell-off.

    My reasoning is looking at the Stochastics here. The weekly Sto’s are just now turning up the heat, after the 60 minute had a chance to reset today.

    There is massive Bull firepower on the sides right now, and all the sentiment is quite bearish right now. I am holding long SPY132′s for the next few days. If WMT can hit its number, we could get a strong rally tomorrow.

    Are you seeing what I am seeing on the monthly and weekly Stochastics for the DOW, SPX, and QQQQ’s? I just keep looking at these charts, and all the big sell-offs come after the monthly and or weekly Sto’s are overbought.

    Also, the market seems to really have held up well with all the negative news lately, why?

  • http://www.stockrake.com Sensei

    Cole,
    Yes I’m VERY VERY VERY VERY bullish beyond this week. I’m expecting a selloff that I will buy into. Buy weakness has been my mantra. I’ve been saying this for days and has been my only stance thus far.

    I’m just playing a small selloff here. Some would say its not worth playing and I think that may be the case. If a selloff doesn’t materialize I’ll eat my loss and my words and go long, which is what I plan on doing Friday eod pretty much no matter what.

    The one wrench in the upmove that is front of us is the Russia ordeal which could bring a rather quick deep selloff that will mark the end to the entire downtrend that started in November 2007.

  • http://www.stockrake.com Sensei

    Cole,
    Yes I’m VERY VERY VERY VERY bullish beyond this week. I’m expecting a selloff that I will buy into. Buy weakness has been my mantra. I’ve been saying this for days and has been my only stance thus far.

    I’m just playing a small selloff here. Some would say its not worth playing and I think that may be the case. If a selloff doesn’t materialize I’ll eat my loss and my words and go long, which is what I plan on doing Friday eod pretty much no matter what.

    The one wrench in the upmove that is front of us is the Russia ordeal which could bring a rather quick deep selloff that will mark the end to the entire downtrend that started in November 2007.