Have No Fear
Have no fear – the PPT is here:
This, my dear ladies and leeches, is how putting a floor underneath the market looks like. For the noobs – the support line you’re seeing is the VWAP. Curiously, after a 30+ drop in the ES futures over Thanksgiving this line is holding like the famed Chinese wall.
Although I was getting some flak from one facetious poster let me reiterate that this is actually long term bearish. Yes, they did put a floor underneath the market and yes, it’s possible that all the ugliness will be gone come Monday. But if you look underneath the hood – A/D ratio is at 0.1 right now and was 0.05 earlier:
Let me repeat – we just rallied over 20 ES points with an A/D ratio below 0.2. – that’s right. So we all know who’s doing the buying right now – none other than the PPT. Futures now approaching 1100 again on no participation.
But longer term this is actually very bearish – come Monday there will be very few stops to run as the bears are not believing this drop. Remember what we’ve been talking about for months now – the market won’t roll over until the bears have truly given up. The spike up today tells me that there are very few bears left – at least none of them are trading today. And even before this ‘Dubay catalyst’ (you all know how I feel about the news) the tape was in the process of rolling over. So, let’s see what Monday brings when the tape is not so easily supported by the weekend crew. If nothing else this drop has probably rattled a few nerves – I’m sure the MSM is already switching into sugar coating mode.
Forget about these crazy temporary gyrations – focus on the longer term picture. And for that you might want to take a peek at my ISEE related post yesterday. Yes, that’s right – while you rats were tripping out on tryptophan I was working my little butt off 😉