Despite the low volume today most of the shorts from this morning’s list worked well. (especially my favorite short these days, TIE) I found a lot of shorts again tonight but once I saw that T2108 slipped back under 20 today (it’s 17.46 now) I feel like I have to temper my bearishness. (Sentiment’s pretty bearish too.)
This market’s starting to feel like a bear trap and I can see this decline sucking in some fresh (bear) meat. One of my favorite pastimes is watching how people arrive at my site. The last week or so I’ve had a good number of people arriving here from searches for info about short selling. That may prove to be a better indicator than my old “this market sucks” indicator. 
(I’ve had a couple of hits from that search recently too.) Once the folks who know nothing about shorting start trying to learn the ropes it’s time to go long.
Nonetheless, I’m finding nothing that I want to buy and the path of least resistance is clearly down. If *they* take ‘em down I’m going to try to go along for the ride…
Here’s the chart of one of the better looking shorts, Salesforce.com (CRM):
We’re back to ‘down’ across the board for the short term trends!
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | LA | LA |
| Intermediate | Down | Down | Down |
| Short-term | Down(-) | Down(-) | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
LA Indicates a Lateral trend
{ 5 comments }
LOL… love those esoteric indicators Mike!
(they dovetail nicely with the spike in odd lot short sales)
Haha, I like, a bear trap. A few weeks ago, all us bears were slowly baiting our bulls in for a trap.
Today’s volume was pretty pathetic. But, I being an analytical type of person, reviewed the whole day, on a minute by minute chart.
Notice how the volume was light on the semi-bull rally at the end of the day, and the volume dramatically picked up when the trend reversed downwards?
And what do they call the formation at the end of a day: an Evening Star, I believe
Well, bulls, Good Evening, and Good Night.
Of course I might be wrong. However, I believe that the long up trend day of last Thursday is still in control. Its low is an important support before an acceleration of prices to the downside and test the lower part of the channel. Yesterday’s low volume is significant as it displays the lack of pressure so far. However prices have retraces 2/3 of the white big candle. 1270 is a foundamental resistance. Although I think this has the characteristics of a lateral market.
very nice read (-:
just a comment on the $compq and volume. i think, falling prices on low or normal volume is bearish (and vice versa), cause it shows, that the transition rate is low. this way, things can go on in creeper mode for some time
Heh! How times have changed… I used to watch the number of unsold copies in the Investor’s Business Daily newspaper racks for signs “little guy” participation. When it emptied out early on in the day, we were closer to a top.
Comments on this entry are closed.