Thursday, September 2, 2010

Well, well, well...the trap is setting

Time to start getting back to business. Market killed a lot of the Elliot-wavers who have been looking for wave 2 up (of the ever illusive and many time called wave 3 down) on every uptick since the mysterious wave 5 that never happened...and many bearish market-guru's as well are in the middle of rewriting their continuously upside target commentary..and the cluster of Hindenburg Omens did what they were supposed to...they got lot of people short and I indicated in previous posts. Otherwise the market has not had much going on which is also a reason I have not posted much in recent days.

The data for initial claims, auto sales and housing numbers are more abysmal than ever and the market structure is not setup for a sustained move. So, tomorrow we get more data, the miraculous ever-to-be downwardly revised job numbers. I wonder how far and many times they will revise this one down in the months ahead. If the numbers are market like JP Morgan's books then we should expect some more squeezing of the shorts and brave longs to targeted...1108 to 1110 would be nice and 1119 would be even nicer...Systems will take advantage of this structure in the markets and will likely take shorts on any push into these levels...there is a 1128 area that I would be watching any sustained breakout over that level as it could point to a push to over the highs of the year if that were to occur, which frankly, I think is not very probable. So far, the models have continued to nail it and covered shorts at the lows and are watching this move for entries (some of which they are taking).

In any case, I have been swamped with new releases and needed to spend some time on documentation and some presentations. I apologize for my lack of posting, I have missed writing on the blog but have spent quote a few days working until the 4:00 am to 7:30 am hours. Watching the sunrise is not as much fun as its cracked up to be when you have worked for 27 hours in front of it. I should be getting back to normal.
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