Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Tuesday, September 1, 2009

Time To Take The Bull Down?

"Failure to fill the gap tomorrow would show new supply responding - entering at a lower price than we've seen them respond at before. Today's narrow value would also be easy to push through should we not fill the gap. We could then see initiative supply enter below 1013.25 try to fill the gap at 104.75. An open below value tomorrow would further indicate that we might see a downside imbalance tomorrow.

If we fill the gap created today in tomorrow's RTH trade this would be an indication of continuation of the current balance and potential rotation through the entire balance region once more.

Seasonality of market into mid September to mid October is generally bearish. Overlapping balances show the long term trend is beginning to mature. We are also finally seeing Selling tails at the highs of the current balance. There are increasing signs that this rally might be coming to an end. I have been bullish up to this point, but it seems like the bulls case is weakening with every day. Even today's market was not real new demand at the lows, but old shorts covering for a profit."
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