Morning Audibles 7.13.10 -

It's easy to grin

When your ship has come in

And you have the stock market beat

But the man worthwhile

Is the man who can smile

When his shorts are too tight in the seat

Judge Smails

Just a simple chart here as the bulls still seem to be in charge here trying desperately to make Doug Kass & Abbey Joseph Cohen like geniuses.

Even a bear would have to acknowledge that despite 5 straight green candles, equities probably still have a little more room to wander on the upside...


Based on the "look" of the chart, CV is looking at several different levels.


- The candles have pierced their upper bollingers (which isn't really a MAJOR indicator, but put it on the checklist).
- DAILY candles aren't showing any negative divergence yet, but the shorter timeframes (like 5 and 10 minutes are).
- Since the flash crash, a lot of work has been done in a PRICE CHANNEL (indicated by the blue lines). I left out the "tails" of some of those candles, or cases where the CLOSING LEVEL fell back into the channel promptly.
- Could we do some activity in creating an UPPER price channel? That would bring some of Andy's ideas of 1150 level into play if it happens
- Overhead resistance MAY be provided by the 200MA &/or the 50MA
- From an "18's" perspective, probably 1098 would be a likely target
- Some higher FIBS have yet to be tested (either vs. 1131, or, vs. 1220)
- What's interesting to CV is that that "piercing" candle (at 1131) occurred on the opex Friday (for June)... Could we be setting up for a replay scenario?
- We've now had two closes ABOVE the wicked June 29th candle... Another close above that level (today), ought to give some bulls some confidence.


$COMP is probably, silently, making its DARK CROSS today (which is unlikely to be heralded because Intel reports (with Google to follow on Thursday)...


All in all, another "ho-hum" day...


Judge Smails:


"Good, good. You know, despite what happened, I'm still convinced that you have many fine qualities. I think you can still become a gentleman someday if you understand and abide by the rules of decent society. There's a lot of...well, badness in the world today. I see it in court every day. I've sentenced boys younger than you to the gas chamber. I didn't want to do it- I felt I owed it to them. The most important decision you can make right now is what you stand for... goodness... or badness."