I Am Scared

The Italian parliament passed austerity measures this morning (why did they have to do it on a weekend!?), and its corrupt prime minister has duly resigned this evening.  Future will explode tomorrow (Sunday) and Monday we’re going to have a huge green gap as the world go into euphoria with abandon, and it is scaring the %$#@ out of me!

Looking at the chart from stockcharts.com, it is crystal clear I would have taken partial exit of my short exposures last week on the 200 day EMA test if it weren’t for the jinx that I had to be using tradestation, which did not and will not make historical price adjustments on SPY due to dividend payouts.  The resulting chart had misled me miserably.  I resent!

Monday can easily gap out of the symmetric triangle, and easily flirt the October high of 129.30 with a modest 3% rally.  If the bulls have their ways, 134 target by year end would be quite reasonable.  I am toast!

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2 Responses to I Am Scared

  1. Frank says:

    Not a shocking news that Italian approved austerity package or its prime minister resigned. Any popup on Monday will be filled.

    In fact, market may sell the news. Or it may gap down because of the uncertainty of the super-committee trying to meet deadline on budget cut.

  2. GreedyKojiro says:

    The S&P 500 should find 200-day MA as its resistance. As long as it does not close above 200-day MA for more than 2 days, I am sticking with my short positions.

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