Thursday, October 22, 2009

SMOKE AND MIRRORS OR JUST PLAIN SMOKED?

Is everything as it seems? LINK HERE

Volume and breadth were weak, TRans flat, naz lithe....only 30 stocks in DOW to manipulate...and remember they also threw out some trash and replaced with stronger companies months back.

And you wonder why you shouldn't throw the house at the market? I know this, the market is very expensive and it must have awfully good eyesight to see $80 in SPX earnings around the corner. I showed in todays AM data that continuing claims on a 4 week (more stable avg) moving average were still above 531,000.

Companies have LOPPED heads to make their marks here, how many of these reporting are showing growing revenues WITHOUT weak dollar assistance?

Irrationality can last longer than you think and longer than your solvency should you continue to fight the trend.

That's why I go in small, managable position, and I can add, so far I have not.....yesterdays action may be a blio but it had the reversal and it had higher volume behind it.....but the Casino operators are very worried and they wont give up easily....

RULE #1....set stop losses so your losing trades don't put you so far behind you can't catch up.......you can be right but at wrong time....SPX 1095 turned back this charade....will it hold for tomorrow....tune in....NOW if today was a BIG DEAL....it should have dwarfed yesterdays volume

D

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