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Tuesday, September 21

The Market is in denial and euphoria. Continue to short $FCX and $LVS.

Looking at the market psychology chart again, Refresh your memory here, http://tradedragonschool.blogspot.com/2010/09/market-psychology-cycle.html. it seems that the market is in both denial and euphoria mode again.

By denial, I mean that the market will go up in the mid term, and by euphoria, I mean that the market will go down in the short term.

Today’s price action is surely breath taking. 2.17, there was a FLASH PUMP! The DOW suddenly jumped 70 points. That was during my economics lecture. I was dumbfounded… WT$? The market has been behaving rather erratically lately. Stocks jumped as soon as the FED said that they may provide more relief to the economy. Well, that is a good and bad news. The latter being that the economy is doing good.

So, finally, the Bulls gave up, and the shorters started shorting the hell out of this market.

It looks like we may see more bearishness ahead. Housing sales figures will freshen the tone, and perhaps the unemployment figures may also help to keep this rally sustainable. Otherwise, the market will crumble one more time.

Trading ideas====

http://tradedragonschool.blogspot.com/2010/09/bearish-hanging-man.html THE BEARISH HANGING MAN – FCX has that.

This candlestick signals more downside for FCX. This confirmed that the previous rally that FCX had was due to GOLDMAN’s PUMP. The Dump begins shortly.

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LVS short confirmed.

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Support is seen at $30.4.

Take profits on your SNDK shorts. It’s time to run before Apple release some surprise devices that will use NAND.

2 comments:

Unknown said...

I think you wrong again. I'm very very sure...the market is going up to my ceiling. If no buyer on the stock market, Wall St. will pump up the price of the securities. I recommend that this is a buy. This is a computer games not analyzation games. So I buy LVS today because you recommend to short it and sell it @ 45/share. As I told you while ago that chinese, singaporeans, malaysian, indonesians like gambles and don't want to go to Genting Highlands because it's very far. And they like Macao girls.....hehehehehehe.... Do your homework before you invest.

dragon said...

ic.
thx for your prediction and opinion. Thx for your take on LVS. Good luck with you long, it isnt too bad. in the long term LVS will reach that target. But I think in the short term, LVS is overbought. Good luck. I will also buy LVS but at a lower price, maybe below $30 if i am lucky

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