Live Update

Thursday, December 3, 2009

12/03/2009 Market Recap: Bearish Reversal Day


Bearish reversal day since March mostly led to a further pullback.

  TREND MOMENTUM EMOTION COMMENT - Sample for using the trend table.
Long-term Up   Disbelieve  
Intermediate Down Neutral  
Short-term Up Neutral    
SPY SETUP ENTRY DATE INSTRUCTION STOP LOSS Mechanic trading signals for reference only.
Back tested since 2002.
ST Model 11/30 L

*Adjust Stop Loss

12/03 Low


Reversal Bar 11/30 L




NYMO Sell *Short tomorrow if Open > Close.


VIX ENV        
Patterns ect.         


Maintain the “building a top” forecast. For details please see 11/27/2009 Market Recap.

As mentioned in yesterday’s report, the most recent Investor's Intelligence Sentiment Survey shows the 3rd record low number of bearish newsletters. Today, let’s take a look at the sideline money, although not extremely low but at least not like what people have believed: too much money waiting on the sideline or fund managers are worried about their annual performances.



Blue cycles below, look at what had happened since the March, whenever SPY opened with an up gap then closed in red? Plus the black bar I mentioned yesterday on chart 1.1.3 QQQQ Short-term Trading Signals, so very likely, a little bigger pullback is very close.


About tomorrow, After Bell Quick Summary is bearish, but bulls may have a chance, 3.1.0 PowerShares DB US Dollar Index Bullish Fund (UUP Daily), the black bar could mean that dollar would pullback. Anyway, whether up or down tomorrow is not important as I think sell bounce should be the name of the game now.



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