Live Update

Monday, August 16, 2010

08/16/2010 After Bell Quick Summary

The bottom line, the short-term trend remains down and I added small short position intraday (not at open as I’ve explained in my forum – the 5 min open range held well so short at open would be very dangerous). Basically, I cannot deny that 3 reversal like bars in a row on the SPY daily chart below may mean a bottom of some kind but I don’t think the rebound, if any, could go too far. I’ll present some evidences in tonight’s report.

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As for tomorrow, probably we’ll see gap up open because it’s rare for the market to gap down 6 days in a row. Also SPY down 5 days in a row, buy at today’s close, sell at the very first green day close which most likely is tomorrow, you’ll have 87% chances since year 2000.

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