02/08/2012 Intraday Watering

[KeiZai]

Bulls: 2 extreme ticks and bears: 0 extreme ticks. 95% pos ticks. Net Advancing is 114. Range is 2.02. We are at 92.1% of Range.

[TraderGirl]

the open.

Cobra, looks like we will sell the news today, what do you think??

I don't see sell yet. What's the news?

Greece is having to agree to measures, meeting today...
http://www.rawstory.com/rs/2012/02/08/g ... ty-rescue/

[Tabby]

the open.

Cobra, looks like we will sell the news today, what do you think??

I don't see sell yet. What's the news?

In contaray, my freestockchart showing spx 1352 and my broker's screen has not shown that yet.

Freestockcharts.com

1351.22 recorded while other sites showing below 1350.

[Al_Dente]

Folks, remember to credit your source when you take charts from another site/trader.
Last thing we need is for Cobra to have to deal with any copyright infringement issues….

[99er]

Believe It or Not

A Staten Island mother is suing the city for a staggering $900 trillion for allegedly wrongfully placing her two sons in foster care and claiming she was mentally unstable.

http://www.huffingtonpost.com/2012/02/0 ... d=webmail8

[Al_Dente]

PAGING SHORT SQUEEZE FANS
If you’ve studied squeeze candlesticks on 5min charts, you know that in the past few months the short covering would exhaust in mid-air at +/- 9 sticks
(even at the October bottom when NYSE short interest was at historic ? highs, signaling to contrarians an impending covering rally).

This month we’ve seen a few squeezes go 12+ sticks… so what does this mean? There are fewer shorts today compared to October (we’ve covered about 4 billion+ shares since Oct…You’ll have 2 check my numbers on that)…

IMHO: more bears are covering, especially at SPY previous highs or SPY gaps or SPY round numbers, which would be where the majority of stops congregate.
All speculation, the only reality is that squeezes this month are pushing higher than previous squeezes…

You can still see when/how a squeeze gets “tired,” e.g. SPY squeeze yesterday:
http://screencast.com/t/i7J99D0V
Note where green sticks #9/#10/#11 at the top FAILED to make a new high…. followed by one last stick pushing higher before the covering exhausted.
In other words, you know the squeeze is near exhaustion when a green stick closes green without having made a new high…if scalpers were still long at that point, their EXIT IMMEDIATELY IF NOT SOONER signal would be the first stick that CLOSED red. Problem is that it can be quite challenging to exit on red sticks, especially if they start waterfalling down (not yesterday). So some scalpers split up their lot, and feed their exit orders on the way up, so as not to get caught on the way down…
NOTE: for intraday trading only: it is very high risk to hold long at 9-12 squeeze sticks.

Clarification: I’ve seen posts here and on cobra’s disqus, implying that somehow short-covering makes the rally “suspicious” or “not a real rally”….
I don’t subscribe to that view. BUYING IS BUYING period. Whether it is bot/programs, shorts covering or the pile-on that inevitably follows….
regardless of Bloomberg yapping all day long yesterday about low volume…. Excessive buying – in any form - creates rallys (and obviously the reverse is true).

Would luv to hear other interpretations…
This is my last post today; see u all tomorrow. GLTA

[jimme]

Good Morning.

Where have all the chartists gone?

ES http://www.99ercharts.com/

GLTA. Be civil.

Good morn double and all. I am an indicatorist and I am very short GLD this am. I could have sold my GLD yesterday but wasn't paying attention to the line on my chart that it bounced off. Of course I would love to see some snow so I can ski. I love to ski. Are you looking for snow?

[Cobra]

the open.

Cobra, looks like we will sell the news today, what do you think??

I don't see sell yet. What's the news?

Greece is having to agree to measures, meeting today...
http://www.rawstory.com/rs/2012/02/08/g ... ty-rescue/

Thanks.

[ccash04]

Is it illegal to sell now? seems market only knows one direction up.

[BullTart]

Looks like he last of the johnny come lately suckers are almost all in for this wave... TVIX looking like it has finally found a ground... 10AM-ish sell off to start in 3... 2.... 1....

[Cobra]

hopefully an overshot here.

[taggard]

PAGING SHORT SQUEEZE FANS
If you’ve studied squeeze candlesticks on 5min charts, you know that in the past few months the short covering would exhaust in mid-air at +/- 9 sticks
(even at the October bottom when NYSE short interest was at historic ? highs, signaling to contrarians an impending covering rally).

This month we’ve seen a few squeezes go 12+ sticks… so what does this mean? There are fewer shorts today compared to October (we’ve covered about 4 billion+ shares since Oct…You’ll have 2 check my numbers on that)…

IMHO: more bears are covering, especially at SPY previous highs or SPY gaps or SPY round numbers, which would be where the majority of stops congregate.
All speculation, the only reality is that squeezes this month are pushing higher than previous squeezes…

You can still see when/how a squeeze gets “tired,” e.g. SPY squeeze yesterday:
http://screencast.com/t/i7J99D0V
Note where green sticks #9/#10/#11 at the top FAILED to make a new high…. followed by one last stick pushing higher before the covering exhausted.
In other words, you know the squeeze is near exhaustion when a green stick closes green without having made a new high…if scalpers were still long at that point, their EXIT IMMEDIATELY IF NOT SOONER signal would be the first stick that CLOSED red. Problem is that it can be quite challenging to exit on red sticks, especially if they start waterfalling down (not yesterday). So some scalpers split up their lot, and feed their exit orders on the way up, so as not to get caught on the way down…
NOTE: for intraday trading only: it is very high risk to hold long at 9-12 squeeze sticks.

Clarification: I’ve seen posts here and on cobra’s disqus, implying that somehow short-covering makes the rally “suspicious” or “not a real rally”….
I don’t subscribe to that view. BUYING IS BUYING period. Whether it is bot/programs, shorts covering or the pile-on that inevitably follows….
regardless of Bloomberg yapping all day long yesterday about low volume…. Excessive buying – in any form - creates rallys (and obviously the reverse is true).

Would luv to hear other interpretations…
This is my last post today; see u all tomorrow. GLTA

Al what's up don't you like us anymore? i agree with what you said about a rally being a rally.

[SB73]

PAGING SHORT SQUEEZE FANS
If you’ve studied squeeze candlesticks on 5min charts, you know that in the past few months the short covering would exhaust in mid-air at +/- 9 sticks
(even at the October bottom when NYSE short interest was at historic ? highs, signaling to contrarians an impending covering rally).

This month we’ve seen a few squeezes go 12+ sticks… so what does this mean? There are fewer shorts today compared to October (we’ve covered about 4 billion+ shares since Oct…You’ll have 2 check my numbers on that)…

IMHO: more bears are covering, especially at SPY previous highs or SPY gaps or SPY round numbers, which would be where the majority of stops congregate.
All speculation, the only reality is that squeezes this month are pushing higher than previous squeezes…

You can still see when/how a squeeze gets “tired,” e.g. SPY squeeze yesterday:
http://screencast.com/t/i7J99D0V
Note where green sticks #9/#10/#11 at the top FAILED to make a new high…. followed by one last stick pushing higher before the covering exhausted.
In other words, you know the squeeze is near exhaustion when a green stick closes green without having made a new high…if scalpers were still long at that point, their EXIT IMMEDIATELY IF NOT SOONER signal would be the first stick that CLOSED red. Problem is that it can be quite challenging to exit on red sticks, especially if they start waterfalling down (not yesterday). So some scalpers split up their lot, and feed their exit orders on the way up, so as not to get caught on the way down…
NOTE: for intraday trading only: it is very high risk to hold long at 9-12 squeeze sticks.

Clarification: I’ve seen posts here and on cobra’s disqus, implying that somehow short-covering makes the rally “suspicious” or “not a real rally”….
I don’t subscribe to that view. BUYING IS BUYING period. Whether it is bot/programs, shorts covering or the pile-on that inevitably follows….
regardless of Bloomberg yapping all day long yesterday about low volume…. Excessive buying – in any form - creates rallys (and obviously the reverse is true).

Would luv to hear other interpretations…
This is my last post today; see u all tomorrow. GLTA

Well said. Frankly I bought the open in anticipation of yet another push up. Volatility is extremely low which makes for a tough market to short. Already have a stop in at break even in case we reverse today. Will start moving it up to ensure profits. Don't like aything overnight.

[99er]

European Bank Run

http://www.zerohedge.com/sites/default/ ... %20Run.jpg

Whoa.

[KeiZai]

BullTart by the way thanks for your great info about TVIX...big like!

[BigChief]

SPY 137 still target?? We shall find out....

[dcurban1]

Technical Analysis, February 8, 2012 – Silver

http://www.atruecontrarian.com/2012/02/ ... -2012.html

Merger Mania in the Mining Industry hits a High Note

http://www.atruecontrarian.com/2012/02/ ... -hits.html

I also wrote an article about Central Bank gold demand and gold production for another site. The link is on the blog if anyone is interested. The short of the story is that ex-India, the top 6 central bank buyers of gold last year covered the production from 6 of the top 10 gold miners.

[Me XMan]

Is it illegal to sell now? seems market only knows one direction up.

[BullTart]

Very interesting divergence today between the VIX and TVIX.

The VIX is down 0.57% right now, but TVIX is UP 0.21%.

What does that mean?

That means that the contango with the VIX futures is being reduced.

I have not seen this behavior in a while now between these two. Options traders are beginning to move the VIX term structure up, increasing the short term slope to an even steeper angle.

That should be a sign that traders are beginning to bake in a future that is not super rosy and that could have some bumps along the way.

Could be one the of the first cautionary signs that something wicked is right around the corner here people. Take note and ignore at your peril.

[ccash04]

AAPL dragging entire nazzie up. CONTEXT confirming this move.