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From the monthly archives:
March 2010
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After Friday’s strong rally in the Euro, which exceeded three prior highs on the daily chart, the substantial Monday pullback should have us looking to get long for some bullish follow-through. The “X” point shown on the chart is two pips below an important prior high at 1.3707, visible on the 15-minute and lower timeframes. Traders should look for a pullback from just above that level to provide a buying opportunity based on a smaller pattern. (Posted by Doug McLagan)
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A 377.79 downside target given here earlier is still viable, but we can lower the bullish reversal threshold to 426.93 from 433.99, since that’s where the hourly chart would turn positive again. If instead HUI heads lower, bottom-fishing at 399.46 would be a decent speculation. We’ll make that our minimum downside target for now.
Stairstepping their way lower for nearly two weeks, the futures have noticeably failed to generate even an ounce of fear. A print today at 1128.30 would show bears who’s boss, but failing that, look for more timid selling down to as low as 1088.00, where structural support from some prior lows exists. A 1095.50 downside target remains viable, and you can try bottom-fishing there with a stop-loss as tight as 1094.90.
What a stretch. After struggling to go lower, stocks got short-squeezed back to unchanged in the final hour of the session. (Incidentally, the day’s low was a nearly exact hit on the ‘D’ target of a pattern on the hourly chart.) To paraphrase Yogi Berra, it was deja view all over again — for about the hundredth time. Fortunately, we had profitably covered all but a single contract of the short position we’d established on Friday. Profit taking has raised our cost basis to 1177.00 (basis the June contract), implying that even if Mr Market does his very worst, we will come away with a handsome gain. Having rolled into the June contract yesterday, let’s set a stop-loss at 1151.00. This is slightly below Friday’s peak, but just above a look-to-the-left high whose breach would be telegraphing a breakout. ______ UPDATE (1:01p.m. EST): We covered at 1151.50, realizing a theoretical gain of $1275 per contract. We’ll continue to short this silly bear rally whenever a similarly juicy opportunity arises.
David Beckham reportedly was recuperating Monday after surgery in Finland to repair a torn Achilles tendon. We wish him well, since no other player has done so much to stimulate interest in the game in the USA. The Los Angeles Galaxy’s celebrated midfielder was on loan to an Italian team, AC Milan, playing in a game against Chievo Verona, when he stepped back awkwardly while taking a pass with his left foot. “He started hopping on his right foot with an expression of pain on his face,” according to a news report. “He reached a hand down to his left heel, then stood up and gestured as if he was breaking a » Read the full article
From the Associated Press, the latest development concerning James Sikes’ alleged 94 mph thrill ride:
SAN DIEGO — Toyota is casting doubt on a man’s claim that his Prius sped out of control, saying that his report is inconsistent with findings of the company’s preliminary investigation.Toyota says the accelerator pedal was tested and found to be working normally and a backup safety system worked properly.
The automaker says the front brakes showed severe wear and damage from overheating but the rear brakes and parking brake were in good condition.
James Sikes says his car raced to 94 mph (150 kph) on a freeway near San Diego last week. The March 8 incident ended when Sikes stopped the car with help from a California Highway Patrol officer.
Bear Rally Nears 1930s Benchmark
by Rick Ackerman on March 17, 2010 4:09 am GMT · 8 comments
At yesterday’s top, the Dow Industrial Average was a mere 239 points shy of equaling the six-month bear rally that followed the 1929 Crash. The blue chip average peaked at 10694 on Tuesday, but it will need to hit 10933 to equal the fervently delusional retracement of the Great Crash to within 77% of the market’s peak value. At the rate the Dow has been climbing, it could be there by week’s end or early next, so place your bets. We’ve can identify one spot between here and 10933 where a short would enjoy » Read the full article