Anna here gang!
It appears that the $DXY is opening lower this evening, which would most likely be bullish for equities. There is a huge Holiday starting tonight @ midnight (Jewish Day of Atonement) September 27 and ends at nightfall on Monday September 28. so the volume will be quite light untill then.
Today the Nine Days of Mother Divine (Navaratri) end.
Tomorrow is the 10th Lunar Day in the current lunar cycle [from New Moon], in Vedic Astrology generally an ausipious day, and this time celebrated as Vijaya Dasami – when Light overcomes Darkness. Technicals suggest a bounce is likely.
I and many other have suggested we are at an important inflection point here, we broke out of the upward channel we were in, but then failed with a blow off top and reversed and closed lower. This is a bearish engulfing candle, but the problem is the volume has been declining the last 3 days the tape went lower. So either we are going to make a stand and rush the bulls with all we got, or they are going to come roaring back and push back to retest the old highs and possibly higher. That is why my 1122 is still so far is in play.
Now looking at the weekly it also looks like a we are nearing a definite change as the Stochastics and MACD are way in the overbought territory, and the BOTH rolling over. Unfortunately there is a possibility that we retest or make new highs. I certainly hope not, but we are at that inflection point, where we could paint new highs, or we may roll over and retrace to the 990 level. Here is a snapshot of the 60 min SPX.
That would be awesome and of course we bears are really drooling over this scenario. At this point which is a bit further out, I see that last wave of poor retail buyers coming in and buying with abandon because “The World is right again, and we have NO ISSUES in the financial world, problems SOLVED” Yea Right!
Then we should hit a high, which I will be shorting like a crazy girl and hopefully we ride in the 600 area or lower in March. I say sometime in the first half of 2010 we definitely test our old lows 666.79 and hopefully lower and we are all on the speed train.
Whichever plan works out our time is near and it will be SWEET~ and I for one will not miss it, and will add short positions on any rips. I don’t know if anyone is familar with DMI. That is the Directional Movement Index, and on all the 3 indexes we are starting to get a negative or bearish movement.
Have a great trading week, and hope we would just paint the new highs, be done with it and move on down. But things don’t always work out the way you want.
There is a great chart from Berk on BIDU and MA. 2 of my favorite stocks to trade. Check them out as they are very good!
A bonus for you that you must see! Once of the most fun stocks to trade (short) is BIDU and Berk has one beautiful chart of Bidu that I am looking to trade quite soon. Very juicy!