All posts by uranium-pinto-beans

Would You Buy This?

The violent buying frenzy of Friday spilled over into today's trading session.   My bearish skew of the market continues to get tested.

Just looking at the buying pressure throughout the session, the relentless bid, coupled with the dips that are feverishly being bought - it is very difficult to look at this market as one that is ready to resume a decline.

And perhaps it won't.  Perhaps the bottom is in.  Perhaps new record highs await us into years end.  Maybe 2016 is the year when stocks fall apart.  Or perhaps we never see a red candle again.

One thing is for certain.  As the buyers come and lift prices with reckless abandon, stocks are starting to turn from a chart perspective.

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Charted Waters

Last week started with a massive sell-off.  Each day thereafter saw the market pull back amid some nasty selling, only to see prices mount a strong rally into the close.  The Friday was the kicker.  But it took the bits and pieces of the three prior days of dip buying and brought it to a whole new level.

The good thing?  If you were long early on Friday, or even a little later on Friday, you went into the weekend with a big smile on your face.  This morning that smile is probably a little bigger, as stock futures continue to move higher off the Friday lows.

If you are bearish on this market, today is a good day too.  Prices for PUTs will drop after the open.  It's tough to argue with the price action last week.  There was obvious attempts all week to keep prices aloft, and finally on Friday the break through came.

If at first you don't succeed buy, buy, again.   Sure enough, on the fourth attempt the buyers succeeded.  The question now is will the buyers remain active, or is this another sell-able rip?

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