10/14/2011 Intraday Watering

[incognitouser]

(why I think it's top)

[spuderik]

Looks like we may be getting a negative divergence in RSI on this re-test attempt (depends on which time scale used of course). I like to use the 60 min chart personally. Could be setting up the end of day flush with a close down near gap fill at 1205.

ZH ran the short interest article again, showing that short interest has dropped rapidly (data up to Sept 30th). Since then it has only dropped more no doubt. That puts fewer squeeze candidates in the cross-hairs and opens up the opportunity for a correction.

http://www.zerohedge.com/news/market-sh ... es-victims

If the market fails to correct here, it will be a very bullish sign as the market generally makes one-way moves out of lows in bull markets. I don't expect it but you have to be respectful of the possibility.

[Unique]

Good bye bulls. See you at 1185. Next week. MUHAHAHAH

Upside limit 1230 for now right?

[BullTart]

Speechless, the top fisher got all the look of the top, but why? why?

it's top guys, I can smell it.

i wouldn't bet on it. take a look at a chart posted by another trader i follow. this is spx 1998. be careful bears ...

... except that in 1998, we didn't get a 10/80 weekly SMA crossover like we just recently did.

The only time in recent history that the 10/80 weekly SMA did a cross and then cross-back was in 1994, and in that case, the MAs were pretty much flatlined so it was really not a true cross.

Of course, I could be wrong and we will bounce back like we did back in 1998 after the whole LTCM / Russian currency incident, but I will wait until the SMA cross becomes undone before putting money into that strategy.

[seekingknowledge]

Speechless, the top fisher got all the look of the top, but why? why?

it's top guys, I can smell it.

i wouldn't bet on it. take a look at a chart posted by another trader i follow. this is spx 1998. be careful bears ...

Very interesting! Thanks for sharing, Angosia. Well, we have jumped above the 50MA on the daily Russell (the index I follow) and that is certainly bullish.

[spuderik]

Same goes for EUR-USD RSI, at least according to FXE

[simpletrader]

watch vix, to see if it bounced above 30 before close.

[CognitiveDissonance]

Both FAZ and TVIX were bought on weakness yesterday.

http://online.wsj.com/mdc/public/page/2 ... yflow.html

[spuderik]

and JNK (high yield ETF) RSI...

[agnosia]

... except that in 1998, we didn't get a 10/80 weekly SMA crossover like we just recently did.

The only time in recent history that the 10/80 weekly SMA did a cross and then cross-back was in 1994, and in that case, the MAs were pretty much flatlined so it was really not a true cross.

Of course, I could be wrong and we will bounce back like we did back in 1998 after the whole LTCM / Russian currency incident, but I will wait until the SMA cross becomes undone before putting money into that strategy.

interesting, something to keep in mind. i do not follow that weekly indicator, just the 13/34 ema on the weekly. i just wanted to show an alternate road map that many are not considering ... thanks.

[incognitouser]

So far the top is holding.

[incognitouser]

Nvm. Haha

[silicon_beaver]

Both FAZ and TVIX were bought on weakness yesterday.

http://online.wsj.com/mdc/public/page/2 ... yflow.html

interesting. FAZ total $$$ flow is positive, but block trade $$$ flow is negative. So, MMs sold FAZ to small individuals?

[Nomorework]

Okay, final hour. Any thoughts on where we close?

[Al_Dente]

PAGING SPUDERIK
thanks 4 zerohedge “Yesterday we got the latest NYSE short interest update”
That’s what I have been waiting 4

Now I can’t even find my own link to “NYSE SHORT INTEREST TOP 100 TABLE” lost it in my last computer crash
Could someone spoon-feed a link for Al here…… please…. I’ve only posted it fifteen times on this board

[seekingknowledge]

Okay, final hour. Any thoughts on where we close?

Looks like the big boys want to take this thing "to the galaxy" to quote our awesome King Cobra. Close higher.

[pady]

I plan to short if we get below 1212 this hour and hold over weekend with 1223 SL.

edit - Below 1214, go short.

[StrikePrice]

Ah the sneaky squeeze play...

[waverider]

PAGING SPUDERIK
thanks 4 zerohedge “Yesterday we got the latest NYSE short interest update”
That’s what I have been waiting 4

Now I can’t even find my own link to “NYSE SHORT INTEREST TOP 100 TABLE” lost it in my last computer crash
Could someone spoon-feed a link for Al here…… please…. I’ve only posted it fifteen times on this board

http://online.wsj.com/mdc/public/page/2 ... tml#shortD

[stucap]

So far the top is holding.

how bout now?