Friday, May 07, 2010


I had been warning about the top in CHINESE stocks made since last AUG of 2009, if CHina was leading the reflation brigade, something was wrong.

More importantly I spotted this wedge formation and when it broke down over the last week as US stocks went higher I sounded another alarm. Then there was yesterday.......SSEC fell another 50 pts last night with JAPAN falling over 300 almost back to its 200 EMA....just days ago many more cautous gurus were bullish on JAPAN....ouch.

Yesterday was more a WARNING about what has become accepted by the people in power as OK, boxes....HUGE too bigger to fail banks and their hedge fund arms sitting behind closed doors playing the market, and thumbing their nose at traditional banking revenue loaning money into the economy.

Yesterday was more a function of LIQUIDITY (WASN'T ANY) than VOLUME. LACK OF both at top, lack of bids....huge program trading volume equal pain.

Largest point move in history of stock market I think. can dismiss it as a one day wonder, go on as if nothing happened.......or wake up and see that something may be horribly wrong.

Unemployment numbers at 8:30


1 comment:

Anonymous said...

Lot's of fat finger glitch trading going on there. Heee hee.