Tuesday, August 11, 2009

Correction Underway

The Qs have taken out 39.25 and have confirmed that the correction is underway. It could be over relatively quickly, maybe by Friday. We will have to wait and see how things develop.

6 comments:

dave said...

Friday is not "quickly".

Today reminds me of that Jane Fonda movie "They Shoot Horses Don't They"

This is like digging a trench with a spoon.

Decimalization of stk prices is evil.

dave

Anonymous said...

What would be "quickly" in your frame of reference, assuming you had a bigger spoon, of course?

dave said...

IF this wasn't a Fed day, i would be suspicious that this was another day that the prevalence of daytrading & daytraders ruined. All too often "trends" are intraday at jai alai speed & not interday.

I hope that there is an Act II & III this afternoon & tomorrow instead of just another one Act play. If you think there's no credence to these concerns consider that yrs ago before direct access trading there was a LOT less daytrading, but mkts trended better.

Regards,
dave

dave said...

Before you get too excited about today look at a hourly chart of SPX & consider how lean the # of NH's today.

Too many mornings like this have been like the "proverbial carrot on a stick". Would love to be wrong & see an Act II this afternoon & Act II tomorrow. From Missouri.

Regards,
dave

Anonymous said...

Looking at the intraday charts, I think this may very well be wave b of the abc correction 8/4 to 8/7.
The surge this am would be wave (c) of b. This bodes well for a near term completion of the correction, perhaps Friday as I suggested.

dave said...

Makes sense to me because despite this "get well" rally we were not yet sufficiently oversold on daily charts.

Regards,
dave