May 20th, 2010 Posted in Uncategorized
"... although the resiliency of the stock market has been impressive, I think the upward trend that started in mid February is over." (Pivot for Profits 5/3/10)
Good Morning Traders
The quote above is from my post on May 3rd. Needless to say while all the smart guys on CNBC were telling you buy the dip and focus on the long term, I was telling you to cover your ass. Did you listen?
They being said, we're about to test the lows set a few weeks ago that the CNBC idiots are now calling the "flash crash". Why is it so hard to believe that someone wanted to get the hell out of the market? Seriously why hasn't anyone sued those people!
Anyway, a retest of recent lows will be an approximate 10% correction from the highs set in February, in many cases. Can we go lower? Yes. Will we go lower? I'm don't know but I do believe we won't go much lower than the lows set two weeks ago, at least not before Memorial Day Weekend. Remember, the recent bailout of Europe wasn't for Greece, it was to bailout the European Banks who owe US Banks. So really who cares if Greece or any other welfare state collapses? It certainly won't be the first time.
If you have questions or comments or care to work with me in real time, please feel free to contact me at 866.312.4965.
Trading Levels
| Daily Pivots | 5/20/10 | ||||
| EQUITIES | R2 | R1 | PIVOT | S1 | S2 |
| ES M10 | 1134.42 | 1122.08 | 1110.42 | 1098.08 | 1086.42 |
| YM M10 | 10605.67 | 10504.33 | 10405.67 | 10304.33 | 10205.67 |
| NQ M10 | 1914.67 | 1891.33 | 1870.42 | 1847.08 | 1826.17 |
| TF M10 | 696.73 | 684.57 | 674.43 | 662.27 | 652.13 |
| ENERGIES | R2 | R1 | PIVOT | S1 | S2 |
| QM N10 | 74.66 | 73.57 | 72.08 | 70.99 | 69.51 |
| QG N10 | 4.46 | 4.35 | 4.29 | 4.18 | 4.12 |