Posts Tagged ‘Charts

19
Aug
10

Bearish Prognostications

Like the dieter that promises himself that he won’t eat all the pizza, (but does so anyway), I made myself a promise that I wouldn’t put a bunch of charts and technicals up here. Sure, it is a trading-oriented blog – but I find dissection of charts a bit dry after a while. If I wanted CHARTS, CHARTS, CHARTS all the time, I would probably visit chart.ly and be done with it.

Hell, if they were more like this – http://chart.ly/qhym5k I most certainly would!

But I have had this interminable itching in the back of my trading mind for a bit, seeing the large wedges forming on the Dow chart, the breakout to the downside and subsequent upwards retrace – and it gives me pause. Condensing daily ticks to physical output, I believe we’re in for another slapdown.

Heresy, I know – the FED is going to pump some massive amounts into Treasuries tomorrow and Friday. But the setup still exists. Here’s what I’m thinking. Dow gets inflated via the “FEDjection” into Friday, then sets up for a good fade into the rest of next week.

Not that I’m suggesting you take this as specific instructions to drop your beer and tv dinners, rush to the computer and place some orders – just that if you agree with me (after doing your own due diligence and financial homework), I think we’re setting up for a good smackdown.

There I said it – it will be google indexed and replicated in a few hours. I can’t go back now! (Not that I would, mind you.)

Here’s to next week! Bombs away!!!

Update: Looks like we’ve gotten a head start for thursday, as of this writing the dow is down 182.78 points! Heck of a slide going into option expiration.

Good Trading!

Trader Tim

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