Hi JK,
Nice chart, and basically I agree with you.
I smell a setup here, with J6P the target as usual. I think there's a lot of painting the tape going on now, and that's certainly easier to do when the volumes are low, and is ever so seductive when there are no shortage of talking heads to blather on about good earnings, low inflation, strong economic recovery, etc. etc. etc.
Volumes have been pathetic, but not unusual for summer. And the markets have never been known for generating sustained rallies during the summer----"Sell in May, and go away", as the old maxim goes.
Personally, I think the programs make most of their profits during low volume periods like this. And I sure can't see buy programs kicking in with any real force here. But with this kind of volume, there's a lot of stocks susceptible to sudden sell long/go short programs that methodically push double volumes of inventory (i.e., inventory owned long and sold, followed by inventory borrowed and sold short) onto the market when volume sags, because that's when the ask can be walked down most readily.
<<I have no problem acting stupid with the crowd as long as it makes me money.>>
I hear ya. I shoulda been more "stupid" over the last few weeks.... still underwater on this short! But... ya gotta know when to hold 'em, and when to fold 'em. And something tells me to hold 'em. I certainly can't see any reason this market can sustain itself, and can see lots of reasons why it won't. J6P might just be in for a rather rude wake-up call from the programs, but if so, I think that will nicely set up a rally into the end of the year.
If nothing else, it'll sure make a nice tidy story.
T |
