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No Bear In Sight
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No Bear In Sight

by The MoleFebruary 6, 2009

UPDATE 1:23pm EST: We keep busting higher without a bear in sight – bulls are seizing the opportunity to bust the tape higher. Nothing pushes markets higher than mass unemployment – raises ‘productivity’ (i.e. jumper cables on employees’ nuts) after all.

Final line in the sand is 876.79 – a few ticks below the January 28 high. If we breach that one the wave count has to be re-evaluated. And wave count or not – breach of that high would make me very cautious.

Today is a good example of the old expression “The market can stay irrational a lot longer than you can stay solvent.” 😉

UPDATE 1:44pm EST: I love the smell of max pain in the afternoon – the bulls are not done yet, just FYI.

Check out this 20 day Bollinger around the Yen – way oversold. The Yen has taken it in the rear in the past 2 days and we are way outside the lower band. What you think will happen next? And what would happen to an overbought equities market when that happens?

UPDATE 2:10pm EST: Let’s review Exhibit C:

Well, unless we’ll see a 60 point plunge in the next 2 hours it’s safe to assume we’ll end the week up. Remember that weekly chart I showed you guys last Friday? Well, there you have it – we got some relief from oversold conditions. I don’t know about you but I’m ready to roll next week – adding puts as we climb the latter.

UPDATE 3:37pm EST: I see more permabulls stepping in to keep the tape above VWAP. Oh yes, please – make my day. I’m buying puts now on every f…ing rip 🙂

UPDATE Closing Bell: Wow, today was a very productive day – can’t wait for Monday. Enjoy your weekend rats – I’ll be chiming in sometime Sunday afternoon to bring you up to speed of what I think awaits us next week. FYI – I exchanged my June puts for massive amounts of Feb/March far OTM puts – was loading up on every rip. If we rally up next week my punishment will be mild – if however we drop into the abyss (as hoped), well you do the math…

Cheers!


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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