ES Journal Archive (2006 - 2008)

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What I'm thinking is that this is like a key reversal in the market.

There was such bullishness yesterday and Dow made new all time highs, the selloff today just seems 'out of sorts' Hardly any support in the afternoon.

Anyway we shall see.

Edit:
2:49 (Dow Jones) With key technical levels on the 10-year and 2-year Treasury note yields having been broken through - the 2-year is close to 5.00%, a level it hasn't been above since last August, while the 10-year is also within 13 basis points of 5.00%, and hasn't been higher than 5.00% since July - yields are likely to continue to rise, says Michael Pond, Treasury and inflation-linked strategist with Barclays Capital. "We expect fundamentals to continue to show strength and for yields to continue to push higher" in the medium term, he says. (DAR)

2:15 (Dow Jones) More selling in Treasurys, with the 10-year down 14/32 to yield 4.87%, the highest it's been since the 5% level hit Aug. 14. 30-year yielding 4.91%, highest it's been since late October. "Once we broke 4.84% in 10-years, we accelerated to the downside because of some stops being hit," says Rick Klingman, managing director of US rates trading at ABN Amro. (DAR/ML)

2:05 (Dow Jones) The DJIA and S&P 500 have surrendered all of yesterday's gains, and the Nasdaq Comp isn't far behind. The strength that fueled stocks yesterday has completely reversed itself today, with only Altria and GM rising on the Dow. Exxon, AIG, Boeing lead the retreat. Every sector is in negative territory, with energy, telecom and consumer services the worst. EBay's gaining, but Google, Cisco, Yahoo are all down more than 1%. DJIA down 113, Nasdaq Comp down 29, S&P 500 down 14. Treasuries are also falling, with the 2-year yield just under 5% at 4.98%. (PJV)
 
Quote from BoyBrutus:

What I'm thinking is that this is like a key reversal in the market.

There was such bullishness yesterday and Dow made new all time highs, the selloff today just seems 'out of sorts' Hardly any support in the afternoon.

Anyway we shall see.
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Certainly there is negative divergence on the daily charts if the market closes here. This doesn't exist on the weekly or monthly, so care must be taken not to get too excited about shorting yet. Rather, pullbacks should be bought when they exhibit new strength and not before.
 
I think the first cracks began to show with recent earnings, in spite of being decent, the market still took the stock apart (INTC & IBM for example)
 
Quote from Buy1Sell2:

Certainly there is negative divergence on the daily charts if the market closes here. This doesn't exist on the weekly or monthly, so care must be taken not to get to excited about shorting yet. Rather, pullbacks should be bought when they exhibit new strength and not before.
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In your estimation, what would the market need to do on a weekly basis to get you bearish?

Thanks
OldTrader
 
Hardly any retrace today, this puppy was saying sell, sell me all day. Largest retrace was 2 3/4 and when it made a Hook down from 1441.25, it was all downhill.

These are why we get out of bed. :D
 
Quote from OldTrader:

In your estimation, what would the market need to do on a weekly basis to get you bearish?

Thanks
OldTrader
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A flattening of the 20 MA would be beneficial and/or a more pronounced selloff, preferably with a bar that tags or goes outside the upper BB and closes back inside. The flattening of the 20 MA is what I call "festering" I would think we would need to see that. For now, my view is that it is best to be long on pullbacks that show additional/new strength. Sidelines right now for me.
 
actually the hook down was at 1439.50 at the 1035 central time bar, then it bounced around a little and then it was "Katy!!!! bar the door".....down another 10 handles to this 1428 area. friday before last fri low.

BINGo, 15 handles shorted at the -6 1443.50. bout time a 15 handle day.
 
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