Morning Audibles 5.25.10 - An "Uncontrollable Urge"

CV "shorted"(with SPXU) very late yesterday afternoon into the close (3:46 to be precise)...


The "timing" was pure luck, but the decision came about from looking at a different set of charts in the afternoon (out of boredom - as I'd been waiting for a "melt-up" to 1095-1097 all morning & afternoon)...


Here's what I saw...






All of a sudden, the market seemed to be struggling with the 1082 level (that's why I started to look around at different charts because that level didn't particularly mean much to me at the time)... On the chart, it appeared that a "triangle" was ending. It was either going to end on the days close, OR, the next day (which many of you know know that I was talking about "Next Tuesday, Next Tuesday" - which is DAY 21 from the 1200 high and DAY 13 from the "flash crash")...


Triangles are ALWAYS formed on charts, but this one seemed to bear added significance... Two of the lines on the triangle corresponded with the two largest UP buying frenzy days since the March '09 rally began (I've annotated those on the chart)... The LARGEST was the move last July (which was something like a 23:1 up day...


In any case, it seemed to me that the market (into the close) was about to give up the highest momentum days of the past year... This had "briefly" been done during the FLASH CRASH, then again last Friday, but the "invisible hand" saved the market going into the weekend... Mr. Market seemed DETERMINED to get to this level... 


Here's what it looked like on 1 minute charts... (that last GANN line was the failure point)...




So basically, the market needs to search for a new level... Anybody could offer a good guess as to where that might be... Here are some possibilities:


- 1044 = February Low
- 1042 = Major FIBO extension (from 1220)


And of course there are others... 


Something that I don't think should be discounted is the 905 level... Why? Because that was the 23:1 "up" day last July 15th (where a chart gap still exists)... That level would also provide some interesting possibilities... A 78.6% retrace (from 905 back to 1220) would take you back to 1150 (which has already been established as an important level)... I'm just thinking ahead here...


Perhaps we go back up a little first and backtest some of the breakdown levels? Or perhaps the attitude will be "sell now - ask questions later"... That's for you all and your UNCONTROLLABLE URGES to navigate...





258 comments:

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I-Man said...

I kinda like the sound of 1.28 against the USD, Ben...

But 1.26 first.

AmenRa said...

I-Man

NK & SK headed into war. Spreads are widening.

Market is pushing higher before the eventual sell off. So the MSM can claim its bullish because we tested the 2010 lows and bounced. So buy buy buy!!!

I-Man said...

@ Ra

Who are you, the PPT?

Nic said...


UFB Census Jobs Scam


Your taxes at work ...

DL said...

AmenRa,

I don't think that N. Korea has the economy to sustain a war. At least, not a war of choice.

Nic said...

Very good squid story from the ETF superpit today:
http://www.youtube.com/watch?v=zZmsaR4wKc0

DL said...

Nic,

Given the trillions we're throwing around, wasted money that totals less than $10B doesn't rate a yawn.

AmenRa said...

I-Man

If you're watching NYSE Ticks you can see that they are throwing everything but the kitchen sink to keep the market from imploding. Serious buying of all dips. MUST...NOT...CLOSE...BELOW...FEB...LOWS. TG & BB called Lloyd and Jamie on the sat phone.

Mannwich said...

Morning (I mean, afternoon!) all! What did I miss? Can anyone provide the cliff notes version for old Manny? ;-)

BinT said...

http://www.businessweek.com/magazine/content/10_22/b4180056325806.htm?campaign_id=rss_topStories

Broke, USA: From Pawnshops to Poverty Inc.

CV, read the first page of this....You think big banks are predators...this man started in 1993. And be sure you read the last paragraph about what he takes home today....This is UFB.

I-Man said...

Oh come on Manny, theres only 209 comments or so to sift through...

:)

Nic said...

It's turnaround Tuesday Manny ... nuff said

McFearless said...

If 5 down completed in cash today then A=C on this move up right around 1071, right by I-man's close call.

either that or the first wave down still isn't complete.

I think AT's big triangle idea gets better every day.

DL said...

Speaking of wasting money, Larry Summers wants to throw another $200B of taxpayer money down a black hole:

http://www.ft.com/cms/s/0/69bb33d8-678b-11df-a932-00144feab49a.html?ftcamp=rss

McFearless said...

TLT + ~3/4 Manny, what else is there???

McFearless said...

Larry Summers is President and CEO of the GIB.

He's on the board as well.

karen said...

I was asking about NK this morning because of crude and i was trying to figure out if there was any premium built into the price..

Mannwich said...

@ben: I had been keeping one eye on things via my I-phone but not the blogs. Very busy lately. Am worried I'm going to "miss" something consequential at the worst time, but I guess I'll get caught up one way or another.

Mannwich said...

@ben: Tough loss by the C's last night. What are the odds that two Boston teams will blow 3-0 playoff leads in the SAME year? A professional sports black swan? I don't think so, although I do think it might go back to Boston for Game 6, giving us Boston fans something to get all worried about.

Give it up for Orlando though. Aside from "Wince", they played well and scrapped hard last night. I think that's probably their best. They are still done in 6, at best, IMO.

McFearless said...

Manny,

yeah tough loss, was a good game though, got really good about half-way through the third, they had a chance at the end and couldn't put down that three. Kendrick Perkins didn't give very good minutes last night for them. nelson played really well last night and so did Howard, but Wince better show up if they want to win. I still think Boston wins.

In other news: Philly to the finals!

I-Man said...

I love watching EW line up with I-nalysis...

karen said...

from John Murphy at stockcharts (maybe a contrary indicator!)

Looking at spx chart: ... the RSI line has fallen below its January low and the 50 line which signals a more serious downside correction. To make matters worse, weekly MACD lines have turned negative. Those two indicators increase the odds that the February lows will probably be broken.

karen said...

spx did break feb lows, this morning so whatever.. on his analysis.. maybe he means a close below feb lows..

McFearless said...

the feb lows....lol, not important.

karen said...

sorry, i should have finished reading.. he's looking for 1010.08 (38.2 drop) for first support.. then 944.53..

karen said...

srs back at yesterday's lows.. i'm buying it this time..

McFearless said...

I actually think the potential counts got bigger today rather than smalle. The huge candle from the flash crash (I can't even stand this term already) are really messing with everybody's counts.

AmenRa said...

Ben

You notice how they would not let the Trin get a foothold above 1? Massive volume in advancing issues.

CNBS must be going berserk. So glad I never watch that channel.

72bat said...

been wondering when consumer backlash with bp might start. there's now a facebook page "no bp gas until the leak is stopped"

mcHAPPY said...

I'm still holding TZA despite a touch of 1072. I'm not buying this is impulsive.

DL said...

72bat,

How about "no BP gas" until they stop buying oil from Iran?

Mannwich said...

Looks like I should have stayed away? ;-)

@ben: Yes, Nelson and Howard were great for Orlando, especially Nelson, who really controlled the game, IMO. Perk and Tony Allen were both horrendous last night. Rondo didn't have a good game either. Seemed off. I wonder if that leg is ailing?

What worries me is the OT could have taken hurt the Celts stamina for Game 5 and that it will carry over a bit. They'd have been better of losing in regulation.

mcHAPPY said...

The 1 minutes are hardly reliable but I'm seeing a head and shoulders.

karen said...

bot some vxx for kixx.. i hate that etf but i couldn't help it.

no srs fill yet..

McFearless said...

@Ra,
that TRIN looks very danger zone to me. And yes, I stopped watching that junk a few months back, after the flash crash I started watching again, it's so funny. I really get a kick out fo the media rush to find a news even that explains every tick of the market and when there isn't news, the move is "technical".

McFearless said...

Manny,

Agreed, Garnett looked dog tired last night. he took a hard elbow from Howard toward the end there when he got the T.

They got good minutes from Big Baby last night, thinking they will probably need that again.

Also, not sure if you saw yesterday but CV is going to do Fantasy World Cup on Yahoo if you want to get in on that. I'm trying to figure out the names of the teams for starters.

McFearless said...

Oh, that was a dumb comment, i guess in World cup the names are countries.

GIB.

Even I participate sometimes.

mcHAPPY said...

That H&S was more like dandruff - scratch it.

Leftback said...

Sold a few long bonds. Just taking profits and raising cash.

Oil "inventories" will be interesting tomorrow. K, still got DTO?

McFearless said...

green S&P, nice. what a day.

72bat said...

karen -
"srs back at yesterday's lows.."
was wondering at that, as i hadn't seen it below 29.75 and yesterday's low was 28.74

I-Man said...

I'll take 1074, cant win em all.

Takuri, baby.

AmenRa said...

Well the market found new levels to test again soon. UFB. TY trailing stops. Something told me this was about to be a repeat of Friday. Plus it didn't take long to pin Trin under 1. Bastids.

mcHAPPY said...

We'll see what happens tomorrow, held on to TZA.

karen said...

bat, you are right.. i should have said, back in yesterday's range!

lb, kept my dto again.. unless something unexpected happens, crude needs to see 64-65 again, imo..

McFearless said...

eh, what's 2 points at Survivor Capital. Nice call today I-man.

McFearless said...

well, I just hope this was not some expanded flat completion today which would have started at the January highs from this year. That would be very annoying for bears.

I-Man said...

1090 is going to be a tough hurdle tomorrow...
But with a little overnight juice and some gappage, "they" will probably gun through it early.

karen said...

for tomorrow:

8:30 AM Durable Orders ex Transportation
8:30 AM Durable Orders
10:00 AM New Home Sales
10:30 AM Crude Inventories

Also, reporting before the open TOL !!

Lord John said...

Seconded on the nice call I-Man! You helped me not go short at that point when you made the call and be immediately underwater (again). Still looking for an entry though :-)

karen said...

okay, good going I-Man! see you all later.. beach walk time and boy do i need it!

Leftback said...

As mentioned above, 1090, 1110 and 1150 lurk overhead.

Great work this week, everyone. Congrats and good luck... LB will be gone for most of the week, of course I will keep an eye open in case there are any more delightful changes in icon. In the mean time, LB has to get his cockerel under control.

McFearless said...

@I,

i agree 1090 should offer some stiff resistance. I doubt we bust through much, if we completed five down today within a wave 3 then the a wave should touch there and the C will likely bring us up to the gap around 1120's which is the 61.8 of what would be labeled as 5 down within wave 3. Dan has the map of this here:

http://3.bp.blogspot.com/_TwUS3GyHKsQ/S_wwRXUDs3I/AAAAAAAAFc0/ezihueEkMUc/s1600/sPX60.png

Ben22 said...

a rally now would be great for sentiment, in time for AAII to rise again this week and also for the buy the dip mentality to reassert itself and provide that "easy trade"

I-Man said...

Thx all...

Lord John,
You made my day brotha with that 4:28.

B22,
If that A ends up at 1126 it will really trip me out.

Havent been to Dan's in awhile, will check it.

Later skaters,
-I

I-Man said...

Dan has pretty charts. lol.

Mannwich said...

@ben: I'd be willing to get in on that! Send me the details to mannwich08@gmail.com

Lord John said...

No problem I-Man,
You've been right on the money about closes too many times for me not to take your thoughts very seriously.

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