Anyone who shorted the double top on the weekly chart of the all time S&P; is a genius. I was looking at the chart last night, and never before has the market really failed to make a higher high, nor has it double topped so blatantly. It was the easiest move in the world to short the market and its constituents in October 2007. How many people actually did it and continue to hold their shorts though?
Probably whoever is still controlling the spiral.
Anyway, I’ve actually started to enjoy watching all these companies get annihilated lately. It’s good to flush the crap out the system every now and again. When the market comes around, there will be a lot of money back in the system through investors and traders on all levels. When that happens (realistically a long time away) there will be some excellent trading.
Also like to give a shout out to my brother who pulled out some sensational trades on the FTSE and recovered from his ‘Trader Death’ last week.
Chart wise MON is still a buy if it gets to $70 again. It’s holding up quite well today despite the selling however it continues the recent trend of lower highs. SUN was a good example of a gap recovery this morning, as it dropped below what I considered long term support around $23.4 before rallying to $26. It too has failed to retest the highs intra-day.
RIG is probably the most interesting on a technical level, as $65 represents some serious former resistance, and the price bounced nicely off this in the last hour.
The trendline on the 5min chart on X continues to hold from the highs on September 2nd. This is a highly tradable stock.
There are too many macroeconomics involved with these stocks at the moment though.
Check this out –
Who is going to buy a new, poorly made, gas guzzling car on finance right now or within the next 12 months? Mind you we will probably see a mega rally up to $50, there is just as much chance of that I suppose.
TIE and X putting in very short term bottoms, as RIG is really struggling to hold that $65 level.
RIG double bottom at $65 for a market rally to close?