We have both SPX and VIX down on the day which means an up day on next Monday. But this setup was wrong twice recently, with soaring bond yield and US$ and lagging Semi and not so bull friendly seasonality, I wouldn’t read too much into this. Besides, for 7 gaps on the SPY chart and a very high open today, the Monday gap up, if any, is even more difficult to hold unless it opens right above today’s high which I think the chance is remote. So I guess, no hurry to long AH even if you truly believe the bellow SPX and VIX setup.
Both AAPL and GOOG are up 9 days in a row, bellow statistics from http://bespokeinvest.typepad.com/bespoke/2009/06/google-goog-apple-aapl-on-9day-winning-streaks.html, should be interesting to you.
Have a nice weekend!
Thanks for everything, Cobra. Hope you enjoy your weekend!
ReplyDeleteBest,
-A.
Cobra,
ReplyDeleteAre gaps supposed to be filled? Gaps can act as support/resistance? It could just mean that this is a very bullish train....and I see next week grinding up to EMA 233 OEX 450/SPX 967ish...
2c
Statistically, gap will be filled, just tometimes it takes a year to fix. But for 7 unfilled gaps, I don't think all are met with the longest case which is a year, so got to fill at least one. You should have already seen the similar case in May when the 7th gap was eventually filled before further pushing up. What I'm talking about here is the 8th gap, if any, next Monday, and you suppose it could hold?
ReplyDeleteA gap could be a run away gap or exhaution gap, my guestion here is how you know that the gap this Monday is a run away gap or exhaustion gap? With so many unfilled gap, which one has higher possibility? 7 gaps are all run away gap?