The only things I can give bears right now is we are approaching extremely overbought, which really means squat a lot of the time, and from a contrarian point of view, severe moves like this are not typical of bull markets. Bull markets tend to grind up very slowly and very painfully over time. This type of violent action is more often seen in bear counter trend rallies.
Only 2 points of resistance left.. 1356 is very light resistance and there's a couple spots in the 1360s. After that it's wide openville.
The things that were previously making everything look bearish all came roaring back. All the momo's, AMZN, LULU, CMG, NFLX, etc. They were looking weak and toppy. Not so much now.
To be perfectly honest,.. this is the most fucked up, riskless, bail out infested, non-capitalist, government intervened, manipulated, computer controlled, algo driven market I have encountered in my 16 years of trading. Things looked ridiculous to me in 2000, watching stocks like bingo.com turn into 50,000% gains on no earnings. This is different, the fucked upedness of this market makes the 2000 tech bubble look sane.
I have no idea whats going to happen short term. I really don't. We could plunge tomorrow out of nowhere, we could rally to new all time highs, we could rally to new highs and then flash crash 1000 points in 1 day. The only thing I can say for certain, is that over a period of time, all this serial fiat printing, bail out nation, socialization of losses, and 1.7 trillion dollar deficits are going to come back and fuck us up real real bad. So bad, that you probably will not want to be living inside the borders of our beloved USA when it happens.
Here's the chart for tonight... not much resistance left. If we hit new highs, there's no telling what could happen. Like I said, anything from suddenly flash crash to new all time highs.
GL
you're gonna need it.
CJ
12 comments:
CJ, Have been following you for a while and think your work is EXCELLENT!
I believe the current bull market will last at least another year or until both the Dow and S&P hit new all time highs or until Obama gets sworn in for his 2nd term. Yes, I agree with all the BS, manipulation and fraud however the folks who run this ponzi scheme have the power to keep it going. Any bad news gets swept under the rug and we resume the rip higher. Good luck CJ and keep up the great work.
Not only SPX,its happening in many of the indices all across the world.Extreme rationale-less-ness.I have shut down my trading for now and will wait till WTI goes above recent high 127..Mother nature needs to wake these bastards up else they will eternally rob the sheeple.
Thanks for the comments. :)
Because of the nature of this market, there's really no telling how far or for how long this could continue.
I suspect it will all come crashing down wwhen Uncle Ben loses the ability to endlessly socialize losses without severely damaging the credit quality of the United States.
or.. an algo could go haywire and we could lose 1000 points in an hour. lol
Anyone else buying the dip this morning? CIC speaking at 10:35,,,,more stimulus in the works???? QE3 coming???? Gotta think like a crook if ya wanna make money in this market.
Tell us how you really feel C.J.,lol
Good work
I would be careful buying this dip. Now that we are heading down with some force, I would at least wait until the Stochs, MACD and RSI are back into oversold territory on a daily chart.
If this happens to gain legs and yesterday becomes a lower high, we would have a potential trend change.
Buying the dip is starting to look like a good move this a.m. Possible short covering EOD? Who would take a chance being short over the weekend? I'm expecting big news on the debt talks progress come early Monday morning for a moonshot north. The bull isn't about to turn anytime soon in my very humble opinion.
Tough to say.
What I dont like about taking a long position here is that this sell off is enough to roll over the stochs, MACD and RSI on the daily, which would indicate a couple weeks of selling, or stagnation at the least.
Alcoa earnings will be good on Monday because of increasing Aluminum prices, but earnings overall that come after that may not look especially good this quarter.
I would wait until new 52 week highs to go long, with a stop just under the old highs.
Very impressed with today's action. Nothing bearish to me...I'm in the camp the uptrend is still very much intact and we're heading to new highs. I read the other day the Debt Ceiling is only 80% "priced in" to the market. I'm fairly confident (say 99.99%) it's going to pass and we're gonna see a nice moonshot rally. Do I agree with it? Hell no! However, putting my little "Criminal Cap" on, I'm trading on the long side through July. Besides, it seems like 90% of the retail traders are all beared-up. The add's to my longs from this AM are staying on.
Y'all have a great weekend.
Looking forward to today's update CJ!
RR
Weekend update will be out on Sunday.
I take Friday and Saturday off. :)
I'll have to look, but 65 points off the DOW on a horrible jobs report after a mega overbought run certainly does not feel bearish.
Buying at day end might have been in anticipation of good earnings from Alcoa Monday morning.
We'll either end next Friday at new highs or a hell of a lot lower.
Enjoy the weekend CJ.
Yeap, today the bulls definitely won. I'm expecting a nice little run through earnings along with the debt increase and July will look pretty good (if you're a bull).
Duh, finally figured how to log on using GOOGLE---lol.
Anywho, AH looks good tonight. Shorts scramblin'? They were dancin' over at the forum this AM. LOL.
Expecting more upside next week.
RR
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