- The U.S. dollar is set to open at new lows for the year and that of course is pushing the market higher. The dollar has a bit more to fall until it reaches the bottom of the downtrend channel it is currently in, therefore you can guess the market has some more room to run to the upside.
- If you've read my last two posts, you have some possible ideas as to why this market keeps rallying. My guess is that we are in the middle of another major short squeeze and if the S&P gets above 1101 (it should open close to that) I expect more shorts to get squeezed further and then you know the drill.
- Unfortunately, after going through my scans, I see nothing worth buying - just a bunch of choppy, unattractive charts, not only on the long side but the short side. Everything looks like a mess. I guess you could just play the indices but I can't get over my skepticism.
- Several extremely good traders that I read from time to time are very bearish right now, probably because there are so many signals pointing that way. Harry Boxer, who is an awesome trader, ended his summary yesterday with this quote - "Stepping back and reviewing the hourly chart patterns, tomorrow’s going to be a very interesting session, as the indices stand precariously on the edge of the abyss in my opinion. We’ll see if we get a sell-off in the next day or two. Many technical indicators at this point are screaming sell." At least I don't feel too bad when I read experts seeing the same thing I am seeing.
Wednesday, November 11, 2009
Here you go...