Friday, May 1, 2009

Be Vewy Qwiet!

Is it me or is it very quiet out there today? This was a feeling I got just looking at price action and now that I have looked at volume I can confirm it. Amazing how all you REALLY need is the tape. Everything else just makes the tape easier.

Now, as a technical analyst, I don't care why but "why is it so slow?" May Day? Can't be. Maybe everyone is in Omaha listening to Uncle Warren.


Amalan said...

yes, seems quite slow today, but isn't it May...anyway, whether you are right or wrong about the direction from here on, your 875 as point of interest was spot on. The market has been dancing around this number for a while and yet closing lower, sometimes just marginally under. Look at today - an hour to go and the SP500 is at 875.6!

paulocuana said...

What looks interesting to me right now is the outlook for junk bonds.
JNK, the SPDR High Yield Bond ETF, looks like it made a double bottom from the Nov-Dec lows to the March 9th low. More importantly, it looks like it completed the formation by breaking out above the early January highs, and it is trading above its 200 day moving average.
HYG, the iShares iBoxx High Yield Corp Fund, is similar in all respects except it's still below the early January high.

Paul O'Cuana

Anonymous said...

In times of manipulated markets -such like we have - technical measures are loosing evidence. The Fed keeps printing money and stocks gain - but patterns could turn soon. You are right, 875 at S&P 500 could be the borderline. If next week brings no shortsqueeze the markets are able to swing down heavily. Instead of shooting star and struggle ahead.
Good shorts - summer is at door.

wave4 said...

A confirmed Evening doji star on the 60 min SPX chart. We also have a major pivot at the same location (around 888).The battle is back at the 875 level with a shooting star & harami pattern indicating what might be in store for next week. However in the last hour we had a bullish engulfing pattern reversing some of the gains made by the bears. Any further insights on the hourly price action ?

paulocuana said...

Today's action, a trap for the Bulls?

Paul O'Cuana

Quick Takes Pro said...

Alas poor 875. Unless this is indeed a bull trap it looks like the 940 predictors were better.

Max - I am slowly accepting that the markets are not as free as we'd like them to be although I won't go into the Goldman Sachs is taking over teh world conspiracy thing.

Wave - No way I can comment on hourly stuff as much as I'd like to. Have to make a living and providing continuous updates is not part of the deal.