Monday, August 08, 2011

Cheer up!

Ok, I failed to see Mrs. Mkt wishes last several days. She is really weird lately. But we are gentlemen, we don't lose our manners when results go against our interests. All the opposite. We keep our best presence and we stand up.I was very lucky in my early years to learn and play 3 sports very different but so similar at the same time ( Box, Golf and Rugby) that were created and fostered under that principle,  which is clearly British to say the truth and I am proud of having learned  that humbleness and honor are nothing but synonyms at those sports. Life in general and trading in particular are no different IMO.

And by the way, we are ready for the next one:

We also know how to cheer up.





See ya at the Gym, 19th Hole or 3rd Half...


7 comments:

  1. Euro isn't breaking down. QE3, marginal divergent new high? I think its possible while Obama is in a panic during his presidential cycle. Of course, if they do it, there will be an even bigger doom scenario coming.

    Not trying to lead anyone the wrong way, but hidden opportunities present themselves when we've resigned ourselves to the obvious. Still not seeing the signal, but it'll come.Until then....what a mess!

    Like you said, something isn't right with that 1370s high.

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  2. Exaclty, these are the times where there is enough reward to retire but it is so unusual dynamics going on that most systems and traders are just not prepared for it..... me included of course 

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  3. You traded this like a master today. Great work!

    I agree with your thoughts. Once again I have a pretty far-fetched scenario. We had the weak top at 1370 and I wouldn't be surprised if we had a weak low here without much time spent below. We go straight up from here. The only reason I bring this possibility up is because we hit a historic oversold level not seen since 1987 that warrants a moonshot market profile. . I also think the dollar needs some resolution to the downside. Lots of volatility and puts were sold today by some big players. I guess we will see, but for me it is an exercise in patterns. Weak top, weak bottom echo with some 2007-2008 pattern mixed in. As always, timing is the thing I need to work on the most. I will have more clues after next Tuesday. This is a premature hypothesis.

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  4. Fantastic reading, particularly about the echo and type of bottom. Totally agree. Also, least expected scenario for 90% of the market is a “sustained” rally. And this is what they have in mind IMO.
    Also , keep an eye on bonds market they should be telling for the next 2-3 weeks .


    GL

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  5. Today isn't the confirmation I was hoping for.  This is starting to look potentially bearish for the short term. Maybe that will argue for a more sustained uptrend later. They stopped the SPX right where they should for this to continue down. Hard to imagine more down from here   lol

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  6. I disagree this time. Today’s action provides more support to bullish case than to bearish case IMO. Of course 109x has to be respected but a couple of days around these levels is “building “ phase until otherwise proven.
    Failure level is clear at least…

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  7. I don't think we disagree so much. My interpretation is that this could rocket up, but with the bigger context it may still be early. It's more of a risk-management comment for any late bulls - they are vulnerable here as are late bears. Although anyone who buys here will make money over the next few weeks.

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