In the Kung Fu Tv series (See link) the teacher used to tell his student, “Be Patient Grasshopper.” The Nasdaq 100 and S&P 500 are both facing resistance lines dating back to the 2007 highs (see below).
Had a good month of September, bought at the lows and “harvested at the highs.” Am going to be patient right now while these major index’s are up against such key resistance. Going to make these two key index’s prove themselves before the next major action is taken…
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The Short positions Rithholtz goes right along with the “caution in tech land” last week (9/30), showing the NDX 100 and Apple up against strong resistance.
Nice link to Ritholtz; he always makes good comments, but last I read from him was that he was long this market about the same time Chris said to buy the XHB, so I don’t know that this is any more than a point of interest and not a bias he might have as he clearly trades for his own wealth. Anyways, it’s easy to sell this chart ahead of the ISM, but this close to earnings, which are expected to increase 23% YOY is not something I’m prepared to follow the “smart money” on.
I see today we have a downgrade of MSFT by Goldman Sachs,… yeah, ok, what’s their record been this year? I’m not sure why anyone even pays attention to them as they seem to be the architects of disaster for all not associated to their prop desk. Anyone who even got a whiff of their currency calls this year as paid dearly. Of course, my favorite was when GS upgraded CAT to a “sell” from a “strong sell”; what does that really mean?….that occurred some time in ’08 I believe
Smart money gets massively short the Nasdaq 100
Even if the market doesn’t drop another point, aggressive traders would have been rewarded today since Chris’ suggestion to buy inverse shorts last week.
As well, from ‘what would you do with these wedges?’, we have indeed broken out of the ascending triangle, to the downside. VXX hasn’t broken out of its descending wedge, from my viewpoint, though it could if we fall harder from this point today.
Intraday… I see negative divergence forming… we might just get that solid close above the upper line of the triangle!
Being carefull, indeed… But last week you told about Euro/Yen and High Yield bonds as “good for stocks”!…
So what, dear kung-fu teacher? 😉
How big a move are you looking for? Something like 3% up or down?