I think this short covering, plunger protection team induced rally is living on borrowed time. I just don't believe in it. They are desperate to strengthen the US dollar to support the worldwide bailout, then once all the debt is transferred to the US they will let the dollar go into free fall. I don't expect anyone to believe me, but the smart ones in the credit pits only get paid if they are right and by the LIBOR and TED spreads I see they don't believe in it either.
I am not sure that the technicals actually matter in a market that's rigged as blatantly and badly as this one, but let's look at a chart of SKF. It seems to be finding support at the $120 area and there is an uptrend line across the lows from around 95 to the higher low of about 110. Notice that it is resting just above the 200 day moving average. The selling that took place did so under enormous volume.
This ETF moves fast so when are we start it will be with a quarter position.
Buy 25 shares SKF at 123.05. Stop at 194.05.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment