Volume shot higher today, but we are unsure how much of this is
pre-positioning
ahead of tonight’s S&P
rebalancing, which was required due to Bank of America’s
recent sale of over 1 billion shares. We’ll see if the spike in
volume spills over into next week’s trading. The secondary indexes
still sport mid-October tops.
Maybe that also explains all of the volume today on the
XLF....more than yesterday and the stock couldn't get above it's
SMA 20 or EMA 20.
"There is enough variability in the short-term subdivisions so
that we have to allow for another upward stab prior to a high, even
though it is not required" Do you have an thoughts on the BAC
article? BB
Posted by doctormike on 5th of Dec 2009 at 08:58 pm
Basically EWI is not sure where the top is. This has to be
their 8th or 9th time calling the top since early August.
In terms of BAC, I really don't think that's the cause.
The big news about employment was the cause.
S&P cash and future has been riding the top of the upward
channel. We have touched that upper trendline three times and
each time we sold off. At this point, I don't think we will
break that line, but we might rally up to reach 1122 in es to make
50% retracement. That should happen on Monday or Tuesday to
fit where the trendline is. Or 1119 in es might be the high
of this rally. Bulls know that there are sellers up there and
Friday's news was extremely good, almost unreal good. I don't
see what kind of news will cause us to break that line.
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XLF, Volume & tonight's rebalancing
Posted by bboylan on 4th of Dec 2009 at 06:25 pm
A few notes from EWI about the volume today.
Volume shot higher today, but we are unsure how much of this is pre-positioning ahead of tonight’s S&P rebalancing, which was required due to Bank of America’s recent sale of over 1 billion shares. We’ll see if the spike in volume spills over into next week’s trading. The secondary indexes still sport mid-October tops.
Maybe that also explains all of the volume today on the XLF....more than yesterday and the stock couldn't get above it's SMA 20 or EMA 20.
BB
Are they still calling the
Posted by doctormike on 4th of Dec 2009 at 09:10 pm
Are they still calling the top? They did last week and it was wrong again.
EWI...Still Yes
Posted by bboylan on 5th of Dec 2009 at 05:47 pm
"There is enough variability in the short-term subdivisions so that we have to allow for another upward stab prior to a high, even though it is not required" Do you have an thoughts on the BAC article? BB
Basically EWI is not sure
Posted by doctormike on 5th of Dec 2009 at 08:58 pm
Basically EWI is not sure where the top is. This has to be their 8th or 9th time calling the top since early August.
In terms of BAC, I really don't think that's the cause. The big news about employment was the cause.
S&P cash and future has been riding the top of the upward channel. We have touched that upper trendline three times and each time we sold off. At this point, I don't think we will break that line, but we might rally up to reach 1122 in es to make 50% retracement. That should happen on Monday or Tuesday to fit where the trendline is. Or 1119 in es might be the high of this rally. Bulls know that there are sellers up there and Friday's news was extremely good, almost unreal good. I don't see what kind of news will cause us to break that line.