Blog Archive


Public blog posts only as education and entertainment. private membership market updates reflect my view and analysis of the market. The information contained on this website and from any communication related to the author’s blog and charts is for information purposes only. The chart analysis and the market comments do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading practice or investment strategy. The materials on this website do not constitute offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor. And i absolutely discourage trading options.

Friday, May 6, 2011

Friday market closing statement vs. Monday market openning statement - gap up nature

it's all about $USD (UUP) - unwind the currency carry trades, unwind the stock market and commodities, and the "transitory reflation".

this Monday when market gapped up with OBL death, i updated with following openning comments:
"it could be ironic that the death of OBL marks the end of the two years bull market. and on a smaller degree, Japanese disasters and s&p downgrade U.S. marked a short term market, and medium term market bottom. market often plays in a contrarian way different from majority people's thought, hence surprised most people."

as the week close on this Firday, my market closing statement is:
market gap up huge with the nonfarm payroll job data, but with the divergences of nonfarm payroll job data and the recent weeks' initial jobless claims trend, i would say the highly $spx correlated should play the critical role to lead $spx sharply lower going forward.
both Monday and Friday market gapped up with high optimism, both gave back majority of the gap up gain. without gap up, what's left? that implies a distribution market, sell on the rally.

Mr. ben transitory, it's all transitory!

much more details on the weekend report, contact me if you want to join me of the process of unwinding the transitory market.