DD, just jumping in here, haven't read what anyone else is thinking yet.
But regards Monday, i have been pondering something, and that is Friday's action,6/21.
Because of what i am conjecturing i have to go into this week on high alert that a 4/10/2000 - 4/14/2000 type of week is quite possibly at hand.
In fact i think only strong PPT action can prevent it.
I feel this Friday could have been much worse, but it was a classic end of week, oversold situation when shorts will cover at their leisure, rather than in panic.
I have no way of knowing, but i think a very significant part of what buying was going on was speculation buying for an oversold rally and shorts covering; but inspite of that one floor reporter in NYSE said all he heard were traders barking out sell sell sell in the last hour.
The cathartic weeks occur in an oversold situation.
My indicators are naturally saying,oversold, rally ahead, but they are also showing a floor buckling stress.
I think next week, without a major prop, we blow out the candles. But where can the prop come from, does not PPT run out of money, or do they just print more?:)
I can only grade this say on a scale of 1-10, and i would put a blow-off week ahead at about 7.5, that is a danger zone in my view. Max p.s. we are in the midst a major buying strike. |
