I will be posting charts as soon as I am able...however, the market is NOT a long here despite the deleveraging going on...what I need to reiterate is that deleveraging works both ways - if you have shorts, you need to cover and if you have longs, you need to sell. With a little intervention, deleveraging of a few insolvent institution's structured products and derivative trades in europe and the Russell rebalancing thrown for good measure - things can get weird. I especially do not seek to day trade days which huge gaps because this type of abberation can get extreme and is not predictable - though the action following it over the next few session usually is. We apparently got both types of deleveraging activity today with especially whacky behavior in names that have been heavily shorted - like Netflix for instance.
A highly likely scenario here is for a complete reversal of this candle and a break of its low tomorrow or Monday. Also, expect follow through on the dollar and on the EURO...there is much futher to go with these moves and the market will follow them.
I do want to recommend that you listen to this interview with Nichole Foss by James J Puplava in April this year. Its excellent and I find it hard to disagree with her on just about anything.
Click on the title below to hear the interview:
The peaking of oil prices and the coming Depression. Resource Wars to follow.
