Thursday, April 16, 2009

Running out of wedge...

We are running out of wedge. I have been waiting for this wedge to break for weeks now. Again everthing is overbought on most time frames.
The stochs on the daily have been diverging. Every day we are looking for that gap down day that will establish and island top...and so far every day we have been disappointed. But everyday more and more people are convinced that the bottom has been put in.
Again we have travelled down to the lower trendline on the VIX:SPX...Looks like tomorrow should be a bounce up in the ratio.
Long term we are inching to extreme optimisim...


tommy t said...

As posted 3 days ago, decline imminent and another pop up into expo Poker. Expect a trading top tomorrow, and I will be shorting.

Pokerden said...

You turned out to be right. I expected it to drift closer to 80 where max pain was. I went short today with May 80 puts as well as 1000 shares of FAZ. Hopefully not too much of a top tomorrow :-P

Anonymous said...

Nice Trinagle Euro/Dollar
SPX- Creazy day Tomorrow
We have see the top or mybe tomorrow we will see high between 874 and 880. Eventually do last shooting will stop most traders. I expect a flat closing for tomorrow possibly to a negative closing.

Peter said...

Thank you very much for your excellent blogs.

Your prediction on market rebounding from March 9 has been proved to be perfect. Let's see what will happen next week.

Good luck.