This One Left a Mark
Posted 10-28-2009 at 11:34 PM by coolhand
If you had any doubts about the intermediate term direction of the market based on the seven sentinels sell signal two days ago, today's action should have cured that. Bad enough I waited an extra day just to be sure I wasn't going to get whipsawed again, but the inability of being able to access my account today to raise cash made matters even worse. It may work out, but today's downward slide put an exclamation point on the current sell-off. And on volume too.
It's time to be defensive as this kind of selling pressure is often indicative of more follow through in the coming weeks. It may even challenge the longer term picture if it gets bad enough, but I'm just focused on the intermediate term for now.
Here's today's charts:
From bad to worse. Not much else to say about these four charts. We have broken to the downside of a rising wedge, and that's reflected in these charts.
One buy signal, TRIN. But BPCOMPQ should get your attention. It's dropping like a lead balloon.
If our top 25% saw this coming, they didn't position themselves for it. (Collectively speaking, of course). Their collective position won't change much going into tomorrow's action either, as the TSP website was down for much of the day.
So we have 6 sell signals out of 7, which keeps the seven sentinels in a sell condition. I am still looking to raise cash at this point. Selling rallies is probably a winning trade now.
It's time to be defensive as this kind of selling pressure is often indicative of more follow through in the coming weeks. It may even challenge the longer term picture if it gets bad enough, but I'm just focused on the intermediate term for now.
Here's today's charts:
From bad to worse. Not much else to say about these four charts. We have broken to the downside of a rising wedge, and that's reflected in these charts.
One buy signal, TRIN. But BPCOMPQ should get your attention. It's dropping like a lead balloon.
If our top 25% saw this coming, they didn't position themselves for it. (Collectively speaking, of course). Their collective position won't change much going into tomorrow's action either, as the TSP website was down for much of the day.
So we have 6 sell signals out of 7, which keeps the seven sentinels in a sell condition. I am still looking to raise cash at this point. Selling rallies is probably a winning trade now.
Total Comments 4
Comments
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Where's that golf ball?
The hedge funds now have the pricing they missed on the way up - if they buy tomorrow it will be a rocket shot. We'll touch the 1037 in the morning intraday and then even I'll be doing some buying.Posted 10-28-2009 at 11:46 PM by Birchtree 
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Where's that golf ball?
I hope so BT. This was a quick shot down and atypical of this bull market rally.Quote:Originally Posted by Birchtree
The hedge funds now have the pricing they missed on the way up - if they buy tomorrow it will be a rocket shot. We'll touch the 1037 in the morning intraday and then even I'll be doing some buying.Posted 10-29-2009 at 12:07 AM by coolhand
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I hope so also BT, After sporting almost 8% in the green last week Im lucky to be holding 0 now, at least I hope so. My a$$ hurts
Posted 10-29-2009 at 01:49 AM by CrabClaw 
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My behind is feeling much better now
Posted 10-29-2009 at 08:14 PM by CrabClaw
