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Tuesday, April 27, 2010

The GS BS

Today's market action can be described by one word.  Booyah!.  I expected this market to gap open,   make a low  lower than 100 on FAS and FAS's negative KOD to give rich returns.  FAS made a new low at 97.53.  There were couple of head fakes meaning false long signals.  One one I got burned. I went long at 102.63 FAS went to 104.32  and came right back gave a short signal at 101. I sold my long for a loss of 1.4 at 101.2 and went short at 100.83. That is how much FAS moved between the sell and subsequent short order.  I covered at 98.11.  I am all in cash.  All indicators are extremely negative.  FAS is way under DOMA 77 on 60,30,15 min charts.  New MACD crossovers have occured in SPX daily chart.  SPX broke thru some key support areas.  VIX was up a whopping 30% today. Sounds a little extreme.  Tomorrow is day 288 from March 6th 2009 and also Fed meeting minutes release date.  GS provided lot of action today.  Tomorrow could be calming day.  If tomorrow is a violent day like today was it will signal the near term end of a move if it is quiet and calm this decline phase may continue.  I will not go short if the market gets hits again.  If there is a rally followed by a sell signal that may the time I will take a short position.  All envelopes were blown away.  JPM, AIG BAC, Wells and MS were all down substantially.  However GS was up.  I am not bullish but am itching to go long.

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