Friday, October 24, 2008

Disappointing Day For The Bulls

well, it looked like the bulls had the balls to do it but they chickened out. CNBC kept talking about how it was a relief that we didn't see the dramatic selloff that the futures were pointing to. This is exactly the same reason why the bulls never showed up!!! There was no climactic selloff intra day. we gapped lower and pretty much grinded sideways to mildly up the whole day. This is exactly what the bears wanna see and bulls, well, you are likely to see more of the same, poor choppy rallies that turn into huge losses by day's or week's end. The charts change SOOO fast that you need to be very quick in this wild tape. I did two trades today and fell asleep as i was up ALL night long watching the futures locked at limit down and frozen at DOW -548. Looking thru the charts after hours, looks more downside likely coming, NOT UP!!! What i will be watching next week? A day where the DOW will be down over 1000 pts and then a strong reversal higher. We shall see, but as of now, i will stick to what has been working, putting on 1-2 trades per day shortly after the open and walking away.....

11 comments:

Phantasmix said...

Will 900 points do? :)

Everyone keeps saying "1000 points on the Dow". It's the crash that may never happen.

Do you think we can slowly grind lower with no big bang?

Anonymous said...

Hi Stewie,
What patterns have you been trading in morning? Are you back to double bottoms on the 1 minute chart?

thanks,
Alfredo

Stewie said...

i do not think the end is near by any means. deleveraging a global financial system doesn't happen in 1 month. this is a process that will take months if not years. all rallies that take place are only short/medium term in nature. i don't see a sustained rally in the mrkts for a long while. as for the ideal scenario it will nearly impossible to imagine the exact scenario as nobody has seen this type of action before. this is a whole new ball game

B said...

stewie what are you seeing that negates the divergences you just posted on the charts?

Bart

Stewie said...

b: from watching the intra day patterns, it doesn't look like there any bullish impulse as of now. never seen anything like it. the buyers are scared shitless to step in front of this. let's see how they play em next week.

Stewie said...

alfredo: this moves so fast that you don't don't have time for double bottoms. look at GOOG at the open, barely had time to buy it and it took off higher. less trades the better in this market.

Anonymous said...

Hey Stewie, check out FXY, nice outlying red candle, much like March 17th...bullish for the s&p for next week, no?

Stewie said...

anon: not sure what the meaning is with the strength of the YEN. but FXY chart is a screaming short here. a couple days of weakness could be very likely but this chart is very bullish longer term. short term pull likely to start monday.

Anonymous said...

Hi Stewie,
This market is a killer.. We need more videos from you to help us through this.

respectfully,

Arthur

Stewie said...

arthur. i got caught up with stuff this weekend. will shoot out a video sunday evening.

Anonymous said...

awesome..

Arthur

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