TO SQUEEZE OR NOT TO SQUEEZE-S2
Scary open in Europe. Banks down hard. Euro near highs. Gold up, oil up. Bernanke, Paulson, and Cox were cued to speak.
As soon as the notes were released, we had a sharp sell-off. This fits the GAP DOWN, GO DOWN pattern. However, several weeks ago, this would've resulted in a slide all day. Now, it results in a panic morning and recovery.
The market was trying to create a short-cover squeeze based the Ben & Hank show. Hank talked about having a "bazooka" to scare the market with. Oh boy!
The market tried to play the squeeze through 1230 several times. It even made it as high as 1235 before cracking.
1221 was the short set-up. It closed at 1211.
The basic observation is:
1. Europe down, wait for V-spike and buy. New pattern.
2. Squeeze play during day. Watch tape for set-ups.
posted by Johnny @ 1:24 PM
1 Comments:
At 7:18 PM,
Lloyd Sakazaki said…
Johnny: Just trying to catch up on what you're doing. Pump 'n dump, bada bing, dry tinder, hiney spike, gap down/go down, and now a new V-spike pattern. Hmm . . . makes me think of Ptolemy's epicycles. Could you maybe provide a definition (as rigorous as possible) of each pattern? Do you think the patterns you are seeing are predictable, either beforehand or when they are getting started? --Lloyd
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