We are still above the 50 day moving averages on the DOW and the S&P although they're not that far away. The 50 day on the S&P is 1325 and we finished the week at 1333. That's just 8 points lower to violate a MAJOR technical support level. On the DOW the 50 sits at 12383, and as of the close on Friday it was at 12512. So we've got just 129 points there.
If either of these bust below the 50 day, even with all the silly Bernanke money I have to suspect we'll get a flush out that could be pretty severe. But until that happens, all we can do is continue to lean long, but with incredible care. The market is so volatile, that swings up and down of 100 points is an every day event, and it's just too easy to get whipsawed around. Even in the big stable names you can buy something in the am, be up 2 dollars a share and by the close be underwater by 3. That makes holding things rough.
This week I suspect more battles between real investors wanting out, and Bernanke's banker buddies trying to keep it up. But.. I do think we have a date with at least testing those moving averages.
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GOLD ALERT.............
http://traderjoed.blogspot.com/
We are still above the 50 day moving averages on the DOW and the S&P although they're not that far away. The 50 day on the S&P is 1325 and we finished the week at 1333. That's just 8 points lower to violate a MAJOR technical support level. On the DOW the 50 sits at 12383, and as of the close on Friday it was at 12512. So we've got just 129 points there.
If either of these bust below the 50 day, even with all the silly Bernanke money I have to suspect we'll get a flush out that could be pretty severe. But until that happens, all we can do is continue to lean long, but with incredible care. The market is so volatile, that swings up and down of 100 points is an every day event, and it's just too easy to get whipsawed around. Even in the big stable names you can buy something in the am, be up 2 dollars a share and by the close be underwater by 3. That makes holding things rough.
This week I suspect more battles between real investors wanting out, and Bernanke's banker buddies trying to keep it up. But.. I do think we have a date with at least testing those moving averages.
I am looking at 1315 and 1297.....
joed
EMINI 100 MIN UPDATED.....
http://traderjoed.blogspot.com/
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