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From DerailedCapitalism:
There is just under two hours left in today's trading session
and the AUD.JPY to ES correlation has decoupled. Since we all know it is
impossible to finish red on POMO days, it is time to put on the
convergence arb and rake in the free money as the late afternoon
parabolic ramp up is bound to happen.
Have a great weekend everyone!
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Now what did you really really expect? Half the talking heads are expounding on the inverse USD-commodities trade...the other half are announcing it's POMO day which means we close green. So instead the dollar/commodity trade goes belly up, the market tanks during POMO, and accelerates its drop after POMO. Just right. Oh- how about the whisper conspiracy that Bennie Boy manipulated the down day to allow the PT's better entry points into APPLE, AMZN, XOM et al?
"we are *close* to seeing what the downside has to offer."
the upside. the downside. sideways.
for any direction. a trader trading a complete trading plan will continuously make more money than one loses.
No doubt. Which is why you stay on the long side until otherwise indicated. But that is part of a fully participating market plan. Just putting out some interesting structural elements that are making themselves known.
The siesmograph needle is twitching, and I am not going to make predictions for 'x-amount' plunge or rally, just that conditions are on the verge of changing. It is the best we can do. Somewhat analgous to the heisenberg uncertainty principle, I can't tell you where price will be in magnitude, but I can tell you when it will be vulnerable to turning.
Cheers, have a good remainder of the weekend...
From what I've been looking at, we have the possible scenario of grinding around the trendline that the Dow has been hugging since it busted higher in September. But for how long? One aspect of what I'm studying gives me an idea of trend duration, and when the probability is high for another counter-move to begin. (Sorry, it isn't Elliott Wave.)
What this suggests is we could have some more melt-up POMO action over the next 9 trading sessions, which would put the highest probability of reversal right after Thanksgiving. So for now - keep the shorting powder dry, but believe me - we are *close* to seeing what the downside has to offer.
Have a good weekend!
For more on the Corruption on Wall Street, watch the YouTube video Bankrupt Motors IPO, Hedge Fund Fraud at (http://youtu.be/JmrZikbC0zE).
The American public gets robbed, and we are supposed to be thankful??!!
Anonymous-
47 seconds agoGreat upload cgreen34, the best fictional writer in the world couldn't even make this nonsense? up. Makes me sick.
Wow. That was easy! Hope you made a killing!
:D
Just the 'Nervous Nellies' rushing to the 'safety' of government debt from the 'risk' of gold et al.
Like ostriches sticking their head in the sand, though I'm not sure ostriches are really stupid enough to do that.
tell that to the govt debt. it sold off too.
rake in the free money as the late afternoon parabolic ramp up is bound to happen
say again?
Markets closed and there was no late afternoon parabolic ramp
Would ZH please stop posting fortune tellers?
Oh get real, Harry.
Ooops,
Big Fail = SuperPOMO.
!!!DAMN YOUUUUUUU BLOOD RED MARKET COLORATIONNNN DAMN YOU TO HELLLLLL!!!!!
Elliot Wave theory (NOT Prechter) says there's another leg up after a mild pullback. If this plays out, it will prove that FED doesn't directly control the market, but knows to open the taps when the market's trajectory is already up.....
Amazing stuff, if it works. But I think Prechter & Co. are too bearish, like most techies.
It's all about the capital flows, which rides waves of social mood. The big panics happen after three legs up. :)
darn.
What are you talking about..."ramp up in AUD/JPY." I have been watching it all day...and I don't see anything that looks like a ramp.
Maybe I'm missing it...perhaps you could explain?
Derailed Capitalism indeed:
404 error
http://derailedcapitalism.com/2010/11/12/aud-jpy-signal%E2%80%A6ernoon-r...
How convenient. This should ban him from ZH (in my opinion).
.....until it isn't.
Looks like today is the first 'isn't' day!
Is this article about trading? What's the diff between this lousy call and running the CNBC monkeys?
Yep, I count Monday and today, the Pomo effect is over.
No one controls the markets, now just watch us sell off through to year's end.
equities are a roundabout, at least, but the fed was unequivocal about buying two to ten years fairly hard. looks like it was another buy on the rumor sell on the news kind of thing.
several down POMO days already...
I don't think they shook out enough longs yet, I'm betting on another day down.
yup...looks like the e-mini's bottomed at 1191...