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Monday, August 20, 2012

Daily update 8/20

At the risk of sounding like a broken record it was another low volume and low volatility day.  Here is the daily SPX chart.

We have a clear hanging man candle today.  Will that usher in a pullback?  I have no idea.  We are close enough to the intraday high of the year it could act as a magnet.  I am really at a loss for words.  We might get more of nothing until the next headline drives people to action.  The market is over bought and VIX is extremely low.  That makes the odds of an explosive move up to new highs and beyond low without a news event that is truly a positive catalyst and not more talk.  Like I said in a previous update, it is easier to get here then it will be to go higher.

This is likely the only time in history that the economic data is this bad while the market is at its highs.  Clearly this move is built on hope, not on fundamentals.  I guess we will see how well that works out. 

Chart practice has been updated if interested.  http://traderbob58-chart-practice.blogspot.com/


1 comment:

Anonymous said...

Hope of QE and actual QE implemented in July by BOE, PBOC, and ECB. Sad really. I wonder when I'll get a chance to learn TA and fundamental analysis in their proper environments. Many indicators are screaming sell. But, they did the same in Feb and the market kept roling. In April, the market listened to those same indicators. What is one to do this time around? If unsure, cash is a good position too.


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