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Troublesome Thursday Wrap Up
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Troublesome Thursday Wrap Up

by The MoleJune 16, 2011

After a hopeful start of the session for the longs we slipped into some bearish follow through mid session. Let me make this crystal clear – I trust none of this and although more downside is always a possibility I am patiently sitting this one out.

Well, here’s the video wrap up – watch it and then tell me if that was truly a bearish session. FYI – NYSE D/A today closed at 1.22:1 – compare that with yesterday’s close at 5.36:1. We may be looking at bearish exhaustion here but to be sure we probably need to see another bearish day with less negative breadth. The pattern on the D/A (and A/D) leaves the door open for a slow downside churn that needs to be strongly interrupted (i.e. an aggressive push higher) to find its floor.

Geronimo was not having fun today. It got stopped out on a short trade early in the day, then it took a long trade and encountered an ‘exit condition’ which in the new version keeps it from taking a loss early. Fortunately it then nailed another short trade, reducing the damage to two handles.

Beautiful signals again on Helter Skalper – not sure why nobody is talking about this one but I can only drag to the horse to the water, I can’t make it drink 😉

For the subs here are some Net-Lines on the daily SPX as well as the hourly spoos:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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When I state above that we need a strong confirming push to stop this slide – well, this is what I meant. That buy level is still a few bagel throws away, so it’s dangerous to engage in bottom calling. But I maintain that chasing this tape is a precarious endeavor and that the odds here are low mathematically.

The hourly spoos chart looks ugly – we are in a range right now that will require a decisive move to produce any resolution. If you squint hard you can see some type of expanding diagonal – which is often signals the of a medium term trend.

Cheers,

Mole
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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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