I guess I was more troubled by yesterday's Fed-rape than I thought, since I was up at 3:30. I did go through all my Core List of charts last night, and I am more convinced than ever that this rally over the past 7 days is based on vapor, paper, and ink. There's nothing real about it. I saw plenty of good short opportunities, and hardly any good long opportunities.
I am not blind to what a good buy looks like. I thought /ES was a great buy down at 670, but I screwed up that trade royally. The projection to 800 was a simple act of arithmetic. But, bullish as everyone suddenly is, there is no way I am going to be buying into the /ES at these levels.
Here's an example of one of the fine shorts I uncovered yesterday evening:
Now that's a nice, clean chart.
As for the wonderful world of FAZ and FAS, I've had enough of those for a while. The shenanigans going on from Bernanke and Geithner make it closer to gambling than trading. I'm going to focus more on the basics. I do think financials as a whole are being puffed up worse than any other sector, but FAZ, from a chartist's point-of-view, is in a no man's land.
Anyway, good luck today………….it's got to be better than yesterday. I hope!
