Intra-Day Update: It’s Dead, Jim!

UPDATE 1:13pm EST: I’m talking about this blog today – is everyone taking this week off? Best sell-the-rip opportunity in a long time IMHO. Meh – you snooze you lose. Anyway, for whoever is left here, today’s RLs:

UPDATE 3:00pm EST: In case you rats wonder what Berk and I are doing. We loaded up on the following:

AAPL, BG, BHP, CCJ, CF, GS, MA, XLU – MA was kicking butt for a while but I snoozed on taking profits.

Anyway, we are watching the 848 RL very keenly. There is a chance the mouth breathers bust through that one today and we might test 857. No balls no babies 😉

UPDATE 3:32pm EST: We just hit 857 – getting a wee bit nervous over here. But the market is so overbought right now that I have a hard time cutting. This is usually when I add positions – problem is that the permabulls are doing a kumba-yaaah in the pits, so we might have to dig deep to find out steel cohones. In the end however, I won’t fight the trend.

UPDATE 3:44pm EST: Okay, the 857 pivot is officially dead. We’ll have to regroup over here. I’m not selling my puts into this, waiting for a snap back. At this stage we are not sure that the trend is to the downside. This was quite a follow-up rally.

UPDATE 6:11pm EST: Regarding the long term market indicator (down-up). This morning Berk and I expected the market to drop this week and then rally for the coming months. However, after today’s tape it’s possible that we may have embarked on wave (4) up. Berk will pour over his charts today and post a very late forecast once he has reviewed all the evidence (and consulted his crystal ball).