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Tuesday, November 9, 2010

Wrong way soon after the start

SPX had a HH and LL that is an intra day reversal to the negative side this in itself is negative for markets for tomorrow.   SPX opened slightly higher and made the high of the day by 7.30 am and it was nothing but downside after that.  The slide caught momentum a few minutes after 10 am as the boys came back from lunch and dumped stocks.  The range was 18 points and we closed 5 points from the bottom and lost about 10.  The interesting part was everything had an intra day reversal.  RUT, AAPL, TNA and many others.  There is a way to play these reversals when they occur.  For a day like today after the HH when TNA starts coming down and passes yesterday's low signaling a Intra day reversal I would short.  If the shorting point was 20 points from the top then I would cover at 20 points from the short.  Thats an exaggeration to prove a point. Today it was 2 in TNA.  61 to 59 short to 57 to cover. 
The markets are clearly breaking down. Correction , Big P3 or just a pull back who cares its come down.  The chart on the right is my accordion chart of spx hourly. 1,3,5.. are the main channels and 2,4,6.. are the median lines.  SPX has broken thru the bottom of main 5 and is on its way to the next main 7 (not marked)  thru 6. But thats only 25% I believe we will get a full 50% correction that will take to 1135 or so. Not early in the morning but quite rapidly.
On similar lines the chart on left is TNA hourly after a small throw over it is back inside the channel.  Its my opinion we would get to the 50% point around 48. Well with that kind of belief I am not looking to go long.  I know a couple of blogs ago I sounded bullish now I am bearish.  That is the beauty of it when I was bullish money was on the bullish side and now the money is on the bearish side.  I am not out to get a Phd I just want some coffee money.
Now a word of caution again on these $30 a monthers did they give a stop loss point. No.  Did they give when and what price to get on. No.
Did they tell you what their percentage of success is. No.  Then why follow them.  Ask them for specific data on what is the percentage rate of return;   Not a guestimate but real time tabulation.  And ask yourself this big question  If you had a good method of making even 5% a month or 60% a year would you give that to some one for just $30 a month? That all I have to say on that tonight.
One more little thing thanks for reading my blog on your way out would you please just click on one of the ads ..that gives me a few cents.

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