Friday, April 22, 2011


I have been in Europe visiting an ill member relative and on some business. Updates have been impossible, as internet has been a challange, and I have not been able to get fully working. I am at a very beautiful place in Germany called Tegernsee and will post some pictures...simply beautiful...

My systems triggered new shorts on Friday and I will post some charts this weekend as is possible...overall the gaps this week are rather bearish, in that in addition to the financials and transports not participating, the gaps were among the larger ones in the NASDAQ 100, s&p500 and Russell 2000 history. Gaps like this, especially on low quality volume with uneven participation, are characteristic bull traps...indeed the fed will meet next week and must attempt to make US debt more attractive and assert their capability to control the scheme, so that their cohorts in government can raise the debt ceiling. Though a raise in interest rates by the fed would be more symbolic than anything else in that it would effect short-term debt, the 30 year bonds would likely remain in their bull market as per my previous post. In any case, it will be interesting to see how these charletans attempt to play it.

The extent of compacency is remarkable not withstanding the significant capitulatory activity in the commodities, euro and dollar. No significant market leader that I watch, especially in the NASDAQ, has broken out to new highs, which puts the whole move on very thin ice.
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