Saturday, August 7, 2010

Euro, Cable (the British Pound) and the SPX were divergent

On Friday, these highly correlated "cousins" were strikingly divergent.   They move large and opposite to each other.  

This kind of odd move could be what is nicely called an "exhaustion gap" but I kind of think of it more as an intentional throw off by the big boyz, the market makers, HBB......the ones who bought the gov.  

As such I took a short position in afterhours futures on Friday afternoon.   Seemed like a no-brainer, Sunday will tell!!

5 comments:

  1. You should be fine. I am waiting for Mon to get short. Think there's one or two days of upside left. Moon is 8/9, and Bradly is 8/10... And that Bradley is a big one.

    Thought for sure we'd be challenging SP1200 at this point, but...

    You'll find this interesting.

    http://spiraldates.com/?p=475

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  2. powerful mojo from the skies the next couple of days, could be a wild ride, but I have to generally agree with you, steve. even if there's a pop (fed announcement?) soon, the risks are still to the downside. good luck to us all.

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  3. thanks for the link, dnarby, I had forgotten about spiral dates, bookmarked now!

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  4. I may try this dollar analysis again today.

    http://oahutrading.blogspot.com/2009/09/chart-of-charts-currency-20-against.html

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  5. I think Fed is just posturing trying to "talk down the dollar.
    A while back I did a 45 minute review of many currencies against the dollar, from a pattern perspective, and then picked intermediate and long term bull and bear. I will try this again today if time allows.

    http://oahutrading.blogspot.com/2009/09/chart-of-charts-currency-20-against.html

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Insightful and Useful Comment!