Same action is now in play, but let's just see is Pomo works again, or whether they let things tank a bit to justify QE2.
Remember, when the FF signal is going down, that represents more Fear. The FF does trend and pattern pretty darn well. In this world of financial gaming where "hot money" is pushed around quickly to ramp some segment and dampen others, and to game stops and create fear, a compound indicator like the FF takes some of the game out of HBB.
And check the ES chart, on that backtest, I went heavy short futures but now even playing options for increased leverage. I had sold my Sept puts this morning at top prices, and when I bought puts back, I went for November because I hate theta burn.
Please drop a comment. And esp. if you have any strategies or particular stock picks with great patterns, Jing them in.
Does look like a good place to get short, that's what troubles me!
ReplyDeleteHowever, given the lack of QE2, I'm not sure POMOs are going to be enough. The Fed seemed to indicate it wanted to wait a bit and see.
Don't think POMOs are enough anymore. They need gobs of hot money to keep this up. The endgame is nigh. Looking for an entry to add to my PMs.
Indeed, a year of shenanigans has taught the bulls to buy the dips, and the bears to be afraid to short....
ReplyDeleteNow, if Elliot Wave guys come out with a monthly, or even worse, a special interim report, then I shall close my shorts and puts by hedging with futures overnight. EWI sure to get gamed.
ReplyDeleteIm a bit worried that tnx/vix rose from the drop today. But it has gone down much deeper that spx, so i still think spx will follow suit soon enough.
ReplyDeleteNFLX is nearing the end of a rising wedge. It's gone up over 200% since Feb.
ReplyDeletegreat post,as usual
ReplyDeletetake a look at http://www.zerohedge.com/article/mmmmm-summer-2008-feeling
Got it on my watch list now. Breakout looks bullish, but a blow-off top is the perfect way to end that charade.
ReplyDelete"lets entertain ourselves as our industrial base goes to hell in a hand basket"
Working Fri Sat, so we see what Friday gives us and do strategy on Sunday.
ReplyDeleteThanks that's a good one, don't have time to read ZH too often.
ReplyDeleteThanks, im self pretty bruised after today, one should always expect the unexpected i guess.
ReplyDeleteInteresting that NFLX barely went over the upper wedge line then ending up inside the wedge, given a huge up day on Friday.
ReplyDelete