Jerry, charting now, mixed bag - many massive oversolds, does not mean cannot get even more oversold. The UTY and TRAN is at top of 5 day, not sure how this plays into DOW trend.
See some room for NAS and SOX to run, but not much then we are overbought again. I see gap and crap for Friday, then maybe a big wash Monday morning leading to the big rally into the afternoon. We are not oversold on SOX nor the NAS, still some room here.
Playing both sides now, hedged to the max but more on short side until after weekend.
The game gets fun - it is next week after FOMC I am having a hard time reading. There is no catalyst once Greeenie is done. Then we head into September warnings season.
Great to get back on same page, tempers flair, but lets all get to work together and kill this market.
I have watched charts stay oversold for up to one month, so need to be careful when calling for an oversold condition in a bear market.
Many of these bounces today were short covering - and that just takes the buying power out of the market and this is not good either, at least for the longs - this is all that is keeping this market afloat.
The smart money will continue to unload into all rallies going forward now. It is like musical chairs, whom will be left holding the paper once the music stops playing!
All the best
West |
