Retesting The Broken 2085 Floor

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This has been a strange few days on SPX. Friday and Monday trended down in a very steep falling wedge, and after that broke up at Monday’s close, SPX has trended up Tuesday and Wednesday in a very steep rising channel. A retracement of some kind today is likely. The patterns from the lows on SPX, NDX and RUT are unsustainably steep, and the historic stats for the last trading day of June are 70% bearish. Bears need to do some damage with that today though as the historic stats for the first day of July are 80% bullish.

Yesterday’s break up through the 5dma put SPX back on the three day rule, and on a close back (at least 2 handles) below the 5dma either today or tomorrow, SPX would then be extremely likely to retest the 1991 low before any retest of the 2120 high. The 5dma closed yesterday at 2051 and I’d be surprised not to see a retest of that today. SPX daily 5dma chart: (more…)

Compound W

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I haven’t done many real estate posts lately, although, as an update to this one (in which an empty dirt lot was being offered for $10 million) I’ll mention that although the For Sale sign seemed to linger longer than usual, it was supplemented with a SOLD sign yesterday. So I guess the Chinese are still buying.

I’ve become quite inured to the lunacy of Silicon Valley real estate, so not much surprises me anymore, but I saw a full page color ad this morning in Gentry magazine (which is a free magazine they distribute around here, packed with a combination of real estate ads, for the tech zillionaires, and plastic surgery ads, for their vain spouses) that demands a post. So I’m writing it, you lucky so-and-so.

The color photographs of this nearly $5 million property featured the most blase, ordinary, McMansion style place you could imagine, but the headline was……. (more…)