Thursday, May 6, 2010
I was right in the middle of history
Today was a historic day in the stock market. To try to make sense of what happened today will be futile. FAS opened and on the fourth minute made a low of 31.53 and went on to 32.47 giving a long signal at 32.4. at 6.45 Which I took for I was anticipating Dino's KOD on the positive side on FAS. It was bad signal. and I got stopped out by 7.30 for $1 in the hole. Fas bottomed at 8.51 at 29.65. The long signal at 30.60 came at 9.30 and I jumped in. FAS made a top at 30.9 and on its way down I had to jump out at 30.15 for a 45 cent loss. Now
$1.50 in the hole. I bought faz for 13.43 and sold it 14.71 and was able to trim my loss to 27 cents and then the panic set in. I saw faz trade at 15.90 and dow down 998 . I mean the dow went from down 107 to 150 to 200 to 245 to 345 to 407 to 5,6,7,8,900 and eventually 998. Erin on CNBC almost running out of words. Cramer was out there telling people to stay away. Then the bad trade of some dude entering 1 billion for 1million shares of PG came out also some market order for 10K PG that went at 40 came massive confusion. Chat room frozen. No one could believe what had happened. It was the most excitement I have had in the stock market. I have a weekly chart on spx and a daily box chart on SPX. The 209 period weekly moving average was just kissed and spx has come down. It is my belief that we may see the old high at 956. I don't know when but looks like we should at least go there. The box chart shows the width of the box in the rally phase and narrowness on the down side. We are not too far away from going net negative for the year which started at 1115. All signals are negative. We may be overbought here. Because dow and spx and the market fell so fast albeit erroneously many professionals jumped in and bought forcing the specialists and mkt mkrs to short to maintain orderly markets. That causes a over bought condition and is resolved by a drop in prices in near future. I also have today's FAS action just to show the severity of the move.
This is Gann time Emblem I had published before in one of my posts. According to it May 6th today was a big turning point. I remembered the date but didn't remember why it was important. Now I know and agree I want to be bullish but under these circumstances I will wait for the DOMA 77 cross on the 60 min. before becoming a bull again.
Posted by Dino at 10:53 PM