Friday, May 18, 2012

Sell, Sell, Sell

Futures made a new low overnight but then they started to rally until the open of the session (small gap up). From there on sellers started to emerge. We had 3 minor rallies during the day, all got faded and new lows were made. Another close near the lows isn't hopeful for the bulls. They'll have to wait another day before we see a bounce. Maybe Monday?

It's definitely not the time or place to go short, but that doesn't mean we can't go much lower. Look at the August '11 crash. In the last 3 days, the market lost 10%. But the recent sell-off looks much more orderly, with small losses everyday, no 2-3% losses so far. And if we get a bigger drop like that, it probably will indicate a short-term bottom.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Metals again were doing great, gold and silver were up good. Copper tried to join the party, but failed and lost 1.3% were as gold gained 1.1% and silver 2.1%.
Oil had another terrible day and couldn't hold the 92-level. The loss was 1.7%.

The euro seems to bounce a bit. It lost the 1.27-level overnight, bounced on 1.265 and rallied through out the day, even when indices/stocks dropped. Close: 1.277.
This weekend there's the G8-Meeting, which might explain why the euro shot up that much in the last hour of trading. Maybe someone wanted to close a big short position before the weekend.

Have a great weekend!

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