{"id":180,"date":"2009-06-08T18:08:36","date_gmt":"2009-06-08T22:08:36","guid":{"rendered":"http:\/\/www.cheapiv.com\/?p=180"},"modified":"2010-09-30T18:11:24","modified_gmt":"2010-09-30T22:11:24","slug":"180","status":"publish","type":"post","link":"http:\/\/www.cheapiv.com\/?p=180","title":{"rendered":"Trade the Market 06-8-2009"},"content":{"rendered":"

As opposed to most Mondays of late the markets in the US and abroad are actually selling off.\u00c2\u00a0 Some are selling off rather significantly.\u00c2\u00a0 The high that our charts show for the DOW since this amazing run began about 3 months ago is 8839.\u00c2\u00a0 That\u00e2\u20ac\u2122s about 2 \u00c2\u00bd percent below the 9050ish number that we\u00e2\u20ac\u2122ve bee working with as our upside target.\u00c2\u00a0 There\u00e2\u20ac\u2122s no denying that the market seems to be tiring a wee bit or more in what could be the late stages of this rally or at least the late stages of the first wave of this rally.\u00c2\u00a0 As we\u00e2\u20ac\u2122ve noted a few times recently, it wouldn\u00e2\u20ac\u2122t be the end of the world for the bulls if this market took yet another breather.\u00c2\u00a0 That\u00e2\u20ac\u2122s really where we see things coming back into focus.\u00c2\u00a0 We need to see how this market reacts should it correct down to some key moving average levels \/ key support areas.\u00c2\u00a0 Its behavior there is likely to dictate if this move is petering out or reenergizing for one more assault to the upside.\u00c2\u00a0 We mentioned that we\u00e2\u20ac\u2122d expect to see volatility and effectively \u00e2\u20ac\u0153monkey business\u00e2\u20ac\u009d around the the neckline to the current pattern and there\u00e2\u20ac\u2122s no reason to change our feelings on that subject.\u00c2\u00a0 But our trader\u00e2\u20ac\u2122s intuition is telling us that smart bulls can\u00e2\u20ac\u2122t be far from taking profits given the run that we\u00e2\u20ac\u2122ve seen.\u00c2\u00a0 We\u00e2\u20ac\u2122re getting the sense that higher interest rates and oil prices and what they portend for the recovery theme are finally seeping into at least a few of the bulls\u00e2\u20ac\u2122 thinking process.<\/p>\n

We can never really know for sure what wiggle or waggle will be the last before a correction of significance begins in the opposite direction.\u00c2\u00a0 Considering how close we\u00e2\u20ac\u2122ve gotten to our upside target we\u00e2\u20ac\u2122d be moving aggressively to secure profits at this point.\u00c2\u00a0 We\u00e2\u20ac\u2122d be happy to go into a \u00e2\u20ac\u0153wait and see\u00e2\u20ac\u009d approach and to trade shorter-term given the type of volatility that we expect to continue to see.\u00c2\u00a0 We\u00e2\u20ac\u2122ve yet to see the manic short-covering blowoff top that we\u00e2\u20ac\u2122ve grown accustomed to seeing but it\u00e2\u20ac\u2122s not as if that type of finish must appear before a significant correction can occur.\u00c2\u00a0 It\u00e2\u20ac\u2122s always about the probabilities for us and at this stage we\u00e2\u20ac\u2122re willing to head towards neutral waters.<\/p>\n

There\u00e2\u20ac\u2122s going to be plenty of news and chatter this week as there is every week but the inter-market dynamics and technicals are what we believe will continue to hold sway even during a consolidation or correction should one unfold. <\/strong><\/p>\n

The Technical Picture:<\/strong><\/p>\n

\"\"<\/a><\/p>\n

<\/em><\/p>\n

We\u00e2\u20ac\u2122ve switched our color scheme around on this SPYs chart.\u00c2\u00a0 It seems as though quite a few folks didn\u00e2\u20ac\u2122t care for our white backgrounds with vibrant colors.\u00c2\u00a0 Hopefully this will work better for them.\u00c2\u00a0 We\u00e2\u20ac\u2122ve kept the labeling to a minimum too as that was apparently getting in the way of the picture for too many readers as well.\u00c2\u00a0 This is mainly a breadth chart that we review regularly.\u00c2\u00a0 There isn\u00e2\u20ac\u2122t a screaming sell signal at this point but we think that it\u00e2\u20ac\u2122s clearly a time to expect a consolidation if not more.\u00c2\u00a0 The momentum of the market seemed to wither somewhat last week.\u00c2\u00a0 The market was unable to reach our projections so that tells us that things are either \u00e2\u20ac\u0153over\u00e2\u20ac\u009d for now or will take a little longer than we anticipated.\u00c2\u00a0 We have a horizontal support line in RED<\/strong> that we\u00e2\u20ac\u2122ve identified as our secondary support if the GRAY<\/strong> support line is penetrated.\u00c2\u00a0 Our view is that we need to see how things are shaping up should the market head to these levels as we\u00e2\u20ac\u2122d expect them to at this point.<\/p>\n

<\/strong><\/p>\n

<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

As opposed to most Mondays of late the markets in the US and abroad are actually selling off.\u00c2\u00a0 Some are selling off rather significantly.\u00c2\u00a0 The high that our charts show for the DOW since this amazing run began about 3 months ago is 8839.\u00c2\u00a0 That\u00e2\u20ac\u2122s about 2 \u00c2\u00bd percent below the 9050ish number that we\u00e2\u20ac\u2122ve […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-180","post","type-post","status-publish","format-standard","hentry","category-week-ahead"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=180"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/180\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=180"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}