S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

So markets are up today because the Fed head punched another $2B or so leveraged US dollars into markets.  In other words, Yellen the market maker was buying.  Yellen the market maker will be buying about the same tomorrow, but the effects should wear off, as per the typical daily POMO cycle, around noon EDT.  Another Yellen backed dump of POMO arrives on Thursday the 23rd.  This should be the second last POMO of October.  Speculation is percolating around a possible extension of POMO into November.  See hourly for details – expect markets to open up and roll over by early afternoon.  Many companies are reporting earnings, but this doesn’t matter (issue zirp bonds, buy back shares, jack EPS, adjust revenue targets, set guidance high and roll back later – lather, rinse, repeat).   Follow Yellen’s POMO and you have all you need – Yellen does the buying until the POMO runs out.

Click on chart to enlarge S&P500 Daily Up About 1% On Day One Of Three Day POMO Week – More POMO Tomorrow

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

The Fed heads pop up like a carnival game of “whack-a-mole” spewing something and markets take off – again.  Interestingly today, the DAX was up 3.12% on the news that four German Banks are about to fail.  Thanks to Tyler over at Zerohedge for that update.  Failing banks sounds bullish to me and explains why US markets moved higher, right Yellen?  All right.  Enough with the sarcastic comments.  Today’s market move is just another example of the big and irrational swings we are going to see as we head much lower.  Short the bounces and avoid long positions – you may not recover this time around.  These moves are going to get much more volatile – both ways.

Click on chart to enlarge S&P500 Daily Rockets 20 Points In First Five Minutes – Moves 4 More Points For Rest Of Day – Thanks Yellen

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

In thin markets, it’s easy for the Fed to push markets around.  It appears that game is over.  Lot’s of bull traps being set.  In 2007, the first leg down was about 400 points.  In other words, there’s more downside ahead in our opinion.  Monday, Tuesday and Thursday next week is 1.0B to 1.5B per day in POMO.  As a result, we can expect some stalling and maybe some short term up turns.  After the 23rd, POMO occurs next on the 28th and that’s all.  FOMC meets in the 28-29 which means Yellen bloviates on the 29th.  We all know that means that the 29th should be a big green, “everything is great” up day.  Expect flat open – we should be tanking again by late morning.  Get into your shorts early.  Keep an eye on your intradays.

Click on chart to enlarge S&P500 Goes On A Wild Swing As Expected – Small POMO Thurs – No POMO Friday

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

POMO comes in at 10a New York time, so that means markets will likely move up in the morning.  POMO ends at 11a New York time and it’s affect should end sooner than the usual 1230p – probably between 1130a and 1200p.  Did we get this right Yellen?  Feel free to comment back if our times are incorrect.  So hold onto your shorts until late morning and then enjoy the ride down.  Volatility is way up and big prices swings will make for some great day trading.  Exit aggressively intraday folks.  I personally will be shorting bounces and will not be trading long – too much downside risk.  We are in wave 1 down.  It will end without much warning and the wave 2 bounce will be big.  Keep this in mind and watch your intradays closely.

Click on chart to enlarge S&P500 Daily Moves Up Early And Falls Sharply In The Afternoon – Yellen POMO Tomorrow

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Lots of fun ahead for day traders as volatility rockets higher.  Swing / day traders start your engines!!!  Yellen has exited POMO and the Europeans, actually Germans, have already decided that they will not prop markets up anymore.   With Yellen out of the way and on the bench where she belongs, markets should normalize quickly.  We intend to short most bounces and will avoid long positions until we see some stabilization to the downside.  When in doubt about these wild swings, refer to your trend lines.  Small POMO on Tuesday and Thursday – so we could see deceleration or a weak bounce – a great time to get short again.

Click on chart to enlarge S&P500 Daily Closes Below 18 Month Channel Support – Expect Wild Swings And Keep An Eye On Trend
Page 1 of 8112345...Last →