James.. Every one is looking to fill the gap, no one really thought that these interest rate hikes have started working, now everyone wants to load up cheap but I don't think that environment is conducive for such a fill, I would assume that we hit 1492 and back down to 1455 before that gap is filled, you need massive selling in SOX BKX DRGs and NWX sectors as IIX and DOT are already beaten down and just coming up to that 25 days mA which has become a proverbial top of these sectors, if this 25 days Cobot timer turns around this can get real melt up process.
This market has caught a lot of people on the wrong foot and I don't think that it is going to be that easy to get out of shorts, everyone wants to see 1428 to square but market may like to take them to 1500 and get them squared their and than to retest this 1442 area or 1455 may be,..bullish sentiment until ast night was at all time low and in this kind of environment I don't think ideally they would be spared a chance they did get four chances when we were testing 1382 so here we are looking at run to 388 and than 4200,, but slow and steady and real chinese torture is on cards probably for anyone with shorts..
Thnnks for your genrous comments, I tell you every good call is worth only the number it is aimed at, it is the directional call within a call that matters, like shifting of focus, re-emphasisisng of sectors when to get in DOW when to get out of Comp when to buy drgs and how to play this bottom, like when everyone else was looking at ugly Comp break I was looking at SPM 1382 that was telling me a different story, when everyone was looking at blow out inflation I was looking at prime rate and housing slow down knowing from real rates levels that this is going to squeeze the economy and when everyone thinks that what else will take for the economy to stop I came up with idea of market would sell because of slow down impact not because of inflation, now lets see when that news hit the stickers that is worth a 150 on Comp.. |
