Wheeeeeeeeee!
Isn’t this fun? We’ve been having a good old time watching our levels get tested and, as you can see from our fabulous Big Chart – we spiked down to EXACTLY the lines we predicted on the Dow, NYSE and the Russell – all on the same day at the same time, almost to the penny – that’s pretty good predicting!
The Nasdaq and the S&P went below but came back above their 5% lines but it’s the S&P we were focused on in yesterday’s post when I said it would be “1,360 or Bust” and the S&P was not fooling any of us with that BS move back up in the afternoon. As I said to Members in Chat at 3:24:
Holy crap – S&P flying up to 1,360 in Futures – index is back to 1,362 as it gains 10 points since 2:15! For perspective, yesterday the S&P was at 1,360 in the Futures at 10:30 and took until 1:30 to get to 1,370. Oh, and did I mention that it then dropped to 1,345 this morning?
Moral of the story – CASH IS KING – this is a very BS market and these moves are crap. All that matters is whether or not they can establish a breaking up TREND that last more than 2 days – other than that, all this intra-day nonsense is just noise.
Not at all surprisingly, the S&P Futures are down over half a point this morning but we are testing the bottom of our bullish range and we’re now at the point where we do expect a little Government/Fed intervention – if not from our own Bernank or do-nothing Congress, then perhaps from the EU, BOJ or PBOC – so many cooks to spoil the broth that we had to take some bearish profits off the table yesterday and move to more cash.
PCLN was one of the short plays we cashed in…
